HUB24: Extending the confidence with FY25 targets
About the author:
- 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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