Hub24’s first quarter flows of $3.0bn were a beat on Credit Suisse’s forecast $2.5bn, while also contributing to a 2% funds under administration beat. The broker notes that with no identifiable large transitions in the period, first quarter levels can be seen as sustainable.
Credit Suisse notes Hub24’s full-year funds under administration target of $63-70bn could prove conservative, and the broker notes potential upside to its own funds under administration forecast of $73bn.
Net flow forecasts upgraded $12-14bn per annum through to FY25, and earnings per share estimates upgraded 4-7% for the same period.
The Outperform rating is retained and the target price increases to $36.50 from $34.00.
Sector: Diversified Financials.
Target price is $36.50.Current Price is $31.25. Difference: $5.25 – (brackets indicate current price is over target). If HUB meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).
