The investment platform operator HUB has fallen over 20% in the last 2-months as the macro headwinds of rising interest rates have hurt high valuation growth stocks. We currently like HUB for 3 key reasons:
- They are growing Funds Under Administration (FUA) materially faster than their competitors.
- Expanding margins while others in the space are contracting – an important metric for all businesses.
- We’re likely to see plenty of upcoming / encouraging news flow as they enter “peak flow season”.
The stocks slowly building strength gaining +4.5% last week as many other tech names continue to disappoint in the current uncertain environment. Investors clearly embraced comments at last week’s investor conference where management reaffirmed targeted FUA of $83bn-$92bn in 2024, significantly above today’s $51bn.
MM likes HUB under $25
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NB: We own HUB in our Flagship Growth Portfolio.
