Hub24’s second-quarter funds under administration (FuA) at $22bn were up 16% on a quarterly basis and 3% ahead of Credit Suisse’s forecast. The platform saw exceptional net inflows of $1.7bn, up circa 25-35% and $322m ahead of the broker’s estimated $1.4bn.
Credit Suisse notes the flows were driven entirely by organic growth with no one-offs called out and reflect the fruits of Hub24’s recent investment in its distribution team.
The broker is optimistic on Hub24’s prospects and expects the platform to increase its market share to 5.6% by FY25 from 2.1% in FY20.
Rating is upgraded to Outperform from Neutral with the target price rising to $26 from $21.50.
Sector: Diversified Financials.
Target price is $26.00.Current Price is $24.86. Difference: $1.14 – (brackets indicate current price is over target). If HUB meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
