Hub24 reported third quarter inflows of $2.6bn, bringing total funds under administration to $51.0bn as of the end of March. Macquarie highlighted flows, which it anticipated to reach $3.0bn in the quarter, were impacted by covid-effected advisers.
The company also announced the acquired super administration business Xplore would be discontinued, with customers moved to alternate solutions in the first half of FY23.
Macquarie also pulled forward expected RBA interest rate increases, driving 2-3% downgrades to earnings per share forecasts from FY25.
The Outperform rating is retained and the target price decreases to $32.60 from $33.50.
Sector: Diversified Financials.
Target price is $32.60.Current Price is $25.96. Difference: $6.64 – (brackets indicate current price is over target). If HUB meets the Macquarie target it will return approximately 20% (excluding dividends, fees and charges – negative figures indicate an expected loss).
