Increasing Our Fair Value for LPL Financial to $289, as Asset Growth Offsets Eventual Rate Headwind

LPL Financial provides an advisory and brokerage platform for advisors, broker/dealer services for financial institutions, and resources for practice management. At the end of 2022, advisors on LPL's platform served over $1 trillion of wealth management assets in the United States. LPL aims to offer services to all advisors regardless of business model. For example, advisors can be licensed with LPL Financial, giving LPL responsibility for managing risk and compliance, or they can operate as a hybrid Registered Investment Advisor using LPL Financial for custody, trading, and administrative support. LPL has also launched a new employee model that allows advisors to fully outsource practice management. Apart from independent advisors, LPL provides services to more than 2,500 advisors at banks and credit unions and more than 3,500 advisors licensed with insurance companies.