Jefferies upgraded its valuation outlook for LPL Financial Holdings (NASDAQ:LPLA) on Tuesday, increasing its price target to $464.00 from $440.00 while maintaining a Buy rating. The new target implies material upside from the stock's then-current price of $393.30 and aligns with InvestingPro data that assesses the company as undervalued relative to its Fair Value.
The firm said the decision to lift the target followed signs that the Commonwealth transaction is tracking toward its stated objective of 90% retention. Jefferies flagged that, with that integration progressing, management's attention is shifting back toward growth initiatives - notably a return to more active recruitment of external advisors.
Jefferies emphasized the appeal of LPL's platform and suggested that the combination of retention progress and platform attractiveness should support improving organic growth in 2026. On valuation metrics, the firm noted that LPL trades at roughly 13.5 times consensus 2027 EPS estimates, a multiple Jefferies views as attractive within its coverage universe. The brokerage also highlighted the company's scale, citing a market capitalization of $31.48 billion.
InvestingPro indicated that seven analysts have recently revised earnings estimates upward for LPL, and its Pro Research Report was noted as a source that synthesizes Wall Street data for investors.
Separately, LPL released its fourth-quarter 2025 results, reporting adjusted earnings per share of $5.23, above the Wall Street projection of $4.94. Revenue came in at $4.93 billion versus an anticipated $4.91 billion. The EPS print represents 23% year-over-year growth and exceeded Citizens' own expectation of $4.88 as well as the consensus estimate of $4.93.
In response to the quarterly outperformance, Citizens raised its price target for LPL Financial to $500 from $475 and maintained a Market Outperform rating. Jefferies' upgrade, the Citizens target increase and the strong quarterly figures collectively underline analyst confidence in the firm's financial performance and prospects.
These updates form part of the recent analyst and company disclosures around LPL Financial, with broker commentary focused on retention outcomes from the Commonwealth deal, a renewed emphasis on advisor attraction and the expectation of improved organic growth beginning in 2026.