Deutsche Bank reckons the recent rally in the Hargreaves Lansdown PLC (LSE:HL.) share price is overdone and has downgraded the stock to sell from hold.
Analyst Rhea Shah pointed out HL shares have risen around 20% over the last two weeks, "which we view as an overreaction to the recent inflation data and 4Q23 trading update."
"At these levels, we feel cautious on the medium-term outlook for the group, and see more downside than upside."
Shah thinks UK investor sentiment will take a while to recover which in turn could keep flows muted in the short-term and earnings could remain relatively flat over the medium-term.
The Deutsche analyst has cut the HL share price target to 790p from 880p alongside the rating downgrade.
Shares eased 1.8% to 910.50p.