Jefferies trims PT on Australia's HUB24 after myprosperity acquisition

Hub24

04/05/2023 01:12

** Jefferies trim PT on Australian data solutions provider
HUB24  HUB.AX  to A$32.42 from A$33.92 
    ** Co says it will buy portal provider myprosperity for A$40
mln to be paid in HUB shares
    ** Jefferies says the acquisition appears "more strategic in
nature", with EPS accretion not expected until FY27 
    ** Brokerage, however, adds that HUB should see increased
inflows from existing myprosperity subscribers, plus revenue
synergies from an improved offering
    ** Brokerage notes that myprosperity is currently running
EBITDA losses, with HUB forecasting negative EBITDA for FY24
    ** Jefferies cuts its EPS estimates for HUB by 3% in FY24
and by 2% in FY25
    ** Eight of 13 analysts rate the stock "buy" or higher, four
"hold", and one "sell"; their median PT is A$32.00 - Refinitiv
data
    ** As of last close, stock up 2.4% this year

 (Reporting by Himanshi Akhand in Bengaluru)
 ((Himanshi.Akhand@thomsonreuters.com;))