Shares of ASX-listed HUB24 Limited (AU:HUB) gained 2.67% after the company reported record net inflows of AU$4 billion in Q1 FY25, excluding large migrations. This marked a growth of 44% year-over-year, signalling a solid start to Fiscal 2025. With this growth, the company achieved the highest quarterly and annual net inflows among wealth management platform providers, showcasing its strong market leadership.
HUB24 provides various investment choices, including integrated platforms, portfolio solutions, technology, and data solutions.
HUB24 Reports Favourable Quarterly Performance
In Q1 FY25, HUB24’s FUA (funds under administration) increased 37% compared to the previous year, reaching AU$113 billion. This includes platform FUA of AU$91.6 billion, reflecting a 41% increase year-over-year. Meanwhile, FUA for portfolio, administration, and reporting services rose 21% year-on-year, totalling AU$21.4 billion.
Additionally, HUB24 announced that it secured 44 new distribution agreements during the quarter, bringing the total number of advisers using its platform to 4,720.
Moving forward, HUB24 remains optimistic about reaching its FY26 platform FUA target of AU$115 to AU$123 billion, with a robust pipeline across all its customer segments.
Analysts Weigh in on HUB24’s Q1 Update
Following the update, Citi confirmed its Hold rating on HUB stock with a price target of AU$56.7. Citi analysts believe there is potential for modest consensus earnings upgrades in FY25 estimates.
Similarly, analyst Olivier Coulon from E&P Capital expects that consensus estimates for net flows in FY25 will rise by more than 10% after HUB24’s results.
Meanwhile, RBC Capital Markets described HUB24’s numbers as “strong,” noting that underlying net inflows of AU$4 billion exceeded its projections by 22%.
Is HUB24 a Good Investment?
On TipRanks, HUB stock has received a Hold rating backed by seven Hold, four Buy, and two Sell recommendations. The HUB24 share price forecast is AU$51.85, which is 20% lower than the current trading levels.
