First half results from Hub24 were slightly ahead of Morgans’ expectations, with the company reporting 79% earnings growth on the previous comparable period to $29.7m and 89% profit growth to $14.2m.
Continued strong funds under management growth of around 40% per annum is translating to revenue improvement as margins stabilise. The funds under asset target increased to $83.92bn in FY24, expected net inflows of $10-14bn annually account for much of the uplift.
The Add rating is retained and the target price decreases to $32.85 from $34.35.
Sector: Diversified Financials.
Target price is $32.85.Current Price is $25.73. Difference: $7.12 – (brackets indicate current price is over target). If HUB meets the Morgans target it will return approximately 22% (excluding dividends, fees and charges – negative figures indicate an expected loss).
