HUB – Credit Suisse rates as Neutral

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Competition in the advised platform market was always going to emerge, Credit Suisse suggests, but BT Panorama’s ((WBC)) price cuts came sooner and are larger than expected, followed by AMP ((AMP)) for MySuper. While the broker still sees significant growth for emerging platforms, price competition will lead to churn and margin compression.

The broker has reduced earnings forecasts for Hub24 and cut its target to $13.20 from $14.10. Downgrade to Neutral from Outperform.

Sector: Diversified Financials.

Target price is $13.20.Current Price is $11.44. Difference: $1.76 – (brackets indicate current price is over target). If HUB meets the Credit Suisse target it will return approximately 13% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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