Netwealth and HUB24 are now serious players in wealth platform industry - Jefferies

Hub24

03/01/2023 18:50

** Jefferies says Australia's HUB24  HUB.AX  and Netwealth
Group Ltd  NWL.AX  are now serious players in the wealth
platform industry 
    ** Brokerage says that despite modest market shares, both
HUB and NWL captured 84% of available inflows for the year to
June 2022; believes both companies can conceivable double their
market shares over the next 10 years
    ** Adds HUB is uniquely placed as the leader in managed
accounts, which continues to be a popular format for financial
advisers and their clients
    ** As a younger platform, HUB should continue to see strong
levels of earnings growth, due to scale benefits - Jefferies
    ** Jefferies says NWL is the fastest growing platform over
the last 5 years as measured by dollar value of net inflows 
    ** Rates HUB and NWL as "Buy"; PT of A$31.16 and A$14.29
    ** 10 of 13 analysts rate HUB "buy" or higher, three "hold";
their median PT is A$31.58 – Refinitiv data
    ** Six of 12 analysts rate NWL "buy" or higher, five "hold"
and one "sell"; their median PT is A$14.40 – Refinitiv data     
 (Reporting by Jaskiran Singh in Bengaluru)
 ((Jaskiran.Singh@thomsonreuters.com;))