HUB24 (HUB) with changing markets
Do you think HUB24 will still maintain or increase their price due to all the money movement into Europe
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Answer
Hi Geoff,
HUB earns a fee based on the total value of assets on their platform, so when markets drop, their Funds Under Administration (FUA) decline and so does their revenue, all else being equal. The other component would be valuation compression in highly priced growth stocks such as HUB – when the music stopped playing courtesy of recent tariff and geo-political uncertainty the sellers struggled to find buyers, e.g. Pro Medicus (PME) -26.7%, Goodman Group (GMG) -23.9%, Aristocrat (ALL) -21%, and HUB24 (HUB) -26.3% – a very diverse bunch of companies.
However, over time, markets generally go up, and HUB benefits from this trend, along with legislated flows into Super.
- We remain bullish HUB but aren’t planning to increase our exposure ~$71 with the stock still not in the “cheap” corner.
