BUZZ-Hargreaves Landsdown: UBS "sell" hits stock, valuations in focus

** UBS (NYSEArca: FBGX - news) starts coverage on Hargreaves Landsdown with a "sell" rating & puts stock in its least preferred list of diversified financials.

** Stock the biggest loser on the FTSE as well as among the most actively traded on an otherwise lackluster day.

** Crux of UBS' view is that current valuation suggests too much optimism on the impact of UK's retail distribution review on flows.

** Some $25 trillion in assets is held by retirees and those nearing retirement - around 75 percent of all retail assets.

** According to UBS mass-market UK population that does not get financial advice will stick to cash savings vs advisors.

** Earnings downgrades for the company underway since early July. 4 out 5 new estimates since were cuts & stock is most expensive on almost any metric vs peers.

CHART: http://link.reuters.com/qek62w (RM (LSE: RM.L - news) : vikram.subhedar.thomsonreuters.com@reuters.net)