Following Hub24’s strategy and business update, Macquarie lowers its estimate for 4Q net flows, to align with (unchanged) funds under administration guidance.
The broker makes further EPS forecast downgrades beyond FY22 due to weaker markets and lower net flow assumptions. These downgrades are partially offset by higher cash spreads, after management confirmed a shift to a higher cash spread product.
The Outperform rating is unchanged and the target falls to $32.20 from $32.60.
Sector: Diversified Financials.
Target price is $32.20.Current Price is $20.29. Difference: $11.91 – (brackets indicate current price is over target). If HUB meets the Macquarie target it will return approximately 37% (excluding dividends, fees and charges – negative figures indicate an expected loss).
