Australia's Hub24 falls, Morningstar flags overvaluation and tariff uncertainty

Hub24

15/04/2025 05:44

** Shares of Hub24 HUB.AX fall 3.2% to A$65.27

** Data solutions provider reports total funds under administration of A$124.1 billion as of March end

** Morningstar says despite solid flows in line with expectations, HUB faces challenges from U.S. tariff-related uncertainties and from fast-growing peer Netwealth NWL.AX

** Says that market is overvaluing HUB, pricing in aggressive assumptions about growth in flows and margins, while underestimating significant investment required for flow wins

** Flags unrealistic expectations to justify current prices, as it would require lowering cost of capital to ~5%

** Lifts fair value estimate to A$31 from A$30

** Stock down 6.6% YTD

 (Reporting by Kumar Tanishk in Bengaluru)

 ((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk;))