Australian wealth platforms rise as Morningstar ups fair value estimate

Hub24

28/07/2025 05:13

** Shares of wealth platforms Netwealth Group NWL.AX and Hub24 HUB.AX rise 1.8% and 0.7%, respectively

** Earlier in the day, NWL rose as much as 3.7% to A$37.98, hitting a record high

** Morningstar increases fair value estimate for HUB and NWL, saying it reflects a lowered cost of equity assumption

New TP
Old TP
Netwealth
A$40
A$31
Hub24
A$15.2
A$12.3

** Expects both cos to overtake wealth manager Insignia IFL.AX as the largest platform operator(s) by FY30

** Also, expects five-year EBITDA margins avg of 41% and 52% for HUB and NWL respectively, which is above their peers

** However, warns market optimism may overlook rising competition and the substantial investment needed for new flow wins, which aren't fully captured in margin expectations

** So far this year, NWL and HUB are up nearly 30% and 50% respectively

 (Reporting by Kumar Tanishk in Bengaluru)

 ((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk;))