PAC Partners analyst Caleb Weng has maintained their bullish stance on 5HK stock, giving a Buy rating on January 25.
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Caleb Weng has given his Buy rating due to a combination of factors that point to both solid current performance and attractive future upside. He notes that Raiz Invest continues to grow its active customer base even during a seasonally softer quarter, alongside strong gains in funds under management, which have risen materially with positive net inflows. Weng expects earnings in FY26 to be underpinned by higher average revenue per user following the recently implemented fee increases, and he anticipates further clarity on this uplift with the upcoming first-half results.
Furthermore, he regards the company’s EBITDA guidance as cautious, considering the dual tailwinds of rising ARPU and cost efficiencies from the Seven West Media advertising initiative. He also highlights the planned launch of US and direct ASX share trading as an important future growth driver, noting that peers derive a large portion of their income from similar brokerage and foreign exchange fee streams. With no major changes to his earnings forecasts and a price target of $1.05 per share, Weng maintains that the risk-reward profile supports a Buy recommendation.
In another report released on January 25, TipRanks – xAI also upgraded the stock to a Buy with a A$0.84 price target.