There aren't too many S&P/ASX 200 Index (ASX: XJO) shares that have performed as well as Hub24 Ltd (ASX: HUB) over the past year. The ASX 200 tech stock has soared 113% in the last 12 months, as shown on the chart below.
It can be a mistake to think a growing business is finished rising after a strong recent rise. Winners have a habit of continuing to win with their operations and profit.
The investment team at Wilson Asset Management (WAM) believe the fintech business can keep growing.
Before discussing why the fund manager's analysts are optimistic about the company, I'll note that WAM described Hub24 as a provider of an integrated platform, technology, and data solutions.
Strong operating performance by Hub24
The fund manager noted the latest quarterly performance by Hub24 was "strong".
In the update for the three months to 30 September 2024, the ASX 200 tech stock reported record quarterly platform net inflows of $4 billion (up 44% year over year), excluding large migrations.
Hub24 also reported that its total funds under administration (FUA) reached $113 billion as at 30 September 2024 (up 37% year over year). That includes platform FUA of $91.6 billion (up 41% year over year), with WAM noting an 8% increase for this figure over the quarter. The portfolio, administration, and reporting services (PARS) FUA increased 21% year over year to $21.4 billion.
WAM pointed out that platform FUA benefited from positive market movements of $3.1 billion.
Another positive for Hub24 for the longer term is that during the quarter it signed 44 new distribution agreements, which saw 195 new advisers using the platform.
Why the fund manager is excited by the ASX 200 tech stock
WAM believes all of those positive numbers bode well for Hub24 shares because they provide the market with confidence the business can meet its FY26 platform FUA target of between $115 billion and $123 billion.
Another positive that WAM noted was a strategic alliance between Hub24 and Reach Alternatives, which the fund manager believes "will provide investors with access to high-quality private equity and private credit investments."
The analyst team suggested that alternative assets have historically been "difficult to access in Australia" and that this recent collaboration will "meet the increasing adviser and client demand for these investments and in turn generate stronger earnings growth across the platform".
WAM finished its thoughts on the ASX 200 tech stock with the following:
Hub24 looks well-positioned for further inflow growth and strong operating leverage over the next 12 months.
