Both specialist platforms Netwealth Group and Hub 24 delivered solid Sep Q flows, Morgans notes. Hub24 reported above expectations and Netwealth slightly below.

The two platforms' funds under administration levels, flows and headline valuation multiples have converged, and the broker sees ongoing structural growth for both groups.

An Add rating for Hub24 reflects the capacity to partially close the operating leverage gap and the optionality within the Class business. Hub does need to show execution of leveraging its expanded and higher cost base however, Morgans warns.

Target rises to $28.05 from $27.10.

Sector: Diversified Financials.

Target price is $28.05.Current Price is $25.21. Difference: $2.84 - (brackets indicate current price is over target). If HUB meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2022 Acquisdata Pty Ltd., source FN Arena