Why is HUB24 Ltd (ASX: HUB) up ~5%?
HUB24 (ASX: HUB) has rallied ~5% today following a strong Q1 FY27 update, with continued growth in funds under administration (FUA) reassuring investors after a sharp selloff. Total FUA climbed 15% year-on-year to $168.6bn, while platform FUA increased 18% to $143.7bn, highlighting the company’s continued market share gains.
The number of financial advisers using the platform rose 12% to 5,860, with 45 new licensee agreements signed during the quarter, reinforcing HUB24’s strong competitive position in Australia’s wealth management sector.
However, the result wasn’t without some softer spots, with platform net inflows falling 23% to $3.98bn and gross inflows slipping 2.7% to $8.64bn. Despite this moderation, the market has focused on the continued expansion in FUA and adviser numbers, particularly given the stock’s recent weakness.
We see good value in HUB24 as it trades ~40% below its 12-month high. Today’s bounce suggests investors are regaining some confidence in the growth outlook, although a sustained recovery will likely require stronger net inflows alongside continued market share gains.
- MM is bullish towards HUB from the ~$68 area.
