Brokerages note first-quarter growth in HUB24, but valuation concerns linger

Hub24

21/10/2025 20:50

** Analysts at Morningstar and Jefferies note strong Q1 FY26 performance by Australia's HUB24 HUB.AX, but continue to find its price-to-earnings ratio elevated

** Morningstar says Q1 FY26 inflows exceeded analysts' forecasts after platform solutions provider on Tuesday posted record quarterly net inflows of A$5.2 billion ($3.38 billion) for first quarter

** While Jefferies notes HUB's platform market share reached 9.0%, surpassing rival Netwealth NWL.AX for the first time, Morningstar flags the possibility that flow momentum may normalize due to a resurgence of competition from larger platforms

** Morningstar also highlights slow growth in net flow and advisor growth for the last four and two consecutive quarters, respectively, and says growth efforts may constrain margin expansion

** Jefferies ups price target by 4% to A$98.40, reflecting gains over time, and retains "underperform" rating

** YTD, stock up 70.4%

 (Reporting by Shruti Agarwal in Bengaluru)

 ((Shruti.Agarwal@thomsonreuters.com))