HUB +11.31%: Stormed higher today after the wealth management platform reported underlying EBITDA for the full year of $102.4m versus consensus of $99.23m, however, they also increased the dividend (18.5c v 12.5c) and announced a $50m buyback which underpinned the shares. Improved cost controls and a lower tax rate drove the beat and provided the board with confidence to repay shareholders with an increased payout for FY23. The operational leverage is starting to shine through for HUB with net profit of $38.2m up from $14.5m last year and total Funds Under Administration (FUA) hit $80.3bn, up 22% YoY.
- A very solid update for HUB however we think the shares rallied too far today.
MM is neutral HUB ~$31.50
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