HUB24: Extending the confidence with FY25 targets

About the author:

Scott Murdoch
Author name:
By Scott Murdoch
Job title:
Senior Analyst
Date posted:
23 August 2023, 9:30 AM
Sectors Covered:
Diversified Financials, Professional Services

  • HUB24 (ASX:HUB) reported in-line with expectations: Platform revenue +30%; group underlying EBITDA A$102.4m (+45.5%). Group NPAT ‘beat’, but only on lower tax.
  • Outlook comments were incrementally positive: 1Q24 flows have commenced at a higher run-rate vs 4Q23; the FUA target was moved to A$92-100bn in FY25 (from A$80-89bn FY24). FUA guidance implies >47% growth over two years.
  • HUB maintained the message of investing to maintain its industry leading position, whilst delivering incremental margin benefits through scale.
  • HUB’s product offerings continue to lead the market (along with NWL); the runway to secure additional adviser market share remains material; scale benefits should drive margin expansion from here; and HUB is delivering ‘cleaner’ financials. We continue to see long-term upside in the stock, however we are now looking for a market-led pull back for a more attractive entry point. We move to Hold.

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