Hub24 reported a -4.6% fall in funds under management in the March quarter but up 32% year on year. Net inflows were 8% higher in the March quarter and up 762% year on year, although management expects a softening in the June quarter. Advertising on the platform increased 28% year on year.

The broker agrees flows will soften as market volatility persists, but the best indicator is advisor growth, and this remains strong. Longer term the broker expects Hub24 to scale successfully and achieve solid earnings growth. Add retained, target rises to $11.08 from $9.42.

Sector: Diversified Financials.

Target price is $11.08.Current Price is $9.53. Difference: $1.55 - (brackets indicate current price is over target). If HUB meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2020 Acquisdata Pty Ltd., source FN Arena