Australia's HUB24 slips on buying myprosperity, UBS says deal "expensive"

Hub24

03/05/2023 04:42

** Shares of HUB24  HUB.AX  fall as much as 2.3% after co
says it will buy portal provider myprosperity for A$40 mln to be
paid in HUB shares
    ** HUB to also pay up to another A$11.5 mln of shares
subject to performance milestones
    ** Analysts at UBS say the deal consideration, even before
the A$11.5 mln payments, "appears expensive"
    ** Says it will take "strong execution and significant
expenditure" to realise any valuable contribution from the deal
in the next 3-4 years
    ** HUB says deal will be EPS neutral in FY26, and 4% to 5%
EPS accretive in FY27
    ** UBS rates HUB 'buy;' PT A$32.00, ~15% above Tuesday's
close
    ** As of last close, HUB up 4.8% YTD

 (Reporting by Harshita Swaminathan)
 ((Harshita.Swaminathan@thomsonreuters.com))