Citi sees lower inflows on yearly basis for Australia's Netwealth, Hub24

Hub24

11/10/2022 05:39

** Citi expects net inflows for Australia's Netwealth
 NWL.AX  and Hub24  HUB.AX  to fall year-on-year on subdued
client activity due to volatile markets despite an increase seen
on a quarterly basis  
    ** The brokerage also lowers net profit after tax estimate
for Netwealth and Hub24 by 2% and 6% respectively to reflect
negative market movement and decreased flows 
    ** Brokerage forecast inflows of A$2.8 billion  ($1.75
billion) for NWL in Q1 23, down 11% y-o-y and A$2.6 billion for
HUB, down 14% y-o-y
    ** However, brokerage expects upgrades on cash revenue to
offset negative market movement for both cos 
    ** Brokerage maintains "Buy" rating for HUB, revises price
target to A$27.35 per share, while it remains "Neutral" on NWL,
cutting its PT to A$13.25 per share
    ** 9 of 11 analysts rate the HUB "buy" or higher, 2 "hold"
and none "sell" or lower; their median PT is A$31.15 – Refinitiv
data
        ** 4 of 10 analysts rate the NWL "buy" or higher, 5
"hold" and 1 "sell" or lower; their median PT is A$14.40 –
Refinitiv data
    ($1 = 1.6000 Australian dollars)
  
 (Reporting by Archishma Iyer in Bengaluru)
 ((Archishma.Iyer@thomsonreuters.com;))