HUB outperformed the market, closing up +0.7%, as the stock continues to consolidate gains following the company’s impressive result in late August – the wealth management platform reported stronger than expected underlying earnings while their growth in total Funds Under Administration (FUA) continued to impress, hitting $80.3bn, up 22% YoY. This is the sort of technology company we like, with considerable operating leverage to growing FUA that will drive very strong growth at the earnings line over the coming years. We have owned HUB in the past, selling it in January at our previous ~$28 target and booking a 23% profit during our holding period, however at the time of sale, we said we’d likely hold this again in the future – it might just be from a higher level!
- We are bullish toward HUB, looking for fresh 2023 highs into Christmas, i.e. 6-10% higher.
MM is bullish towards HUB short term
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