Hub24 Ltd (ASX: HUB) shares have more than doubled over the past 12 months.
But if you thought the gains were over for the ASX 200 tech stock, think again.
That's because the team Bell Potter believes there's still plenty more gas left in the tank for the investment platform provider's shares.
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What is the broker saying about the ASX 200 tech stock?
Bell Potter notes that Hub24 released its full year results this week and delivered a net profit ahead of expectations. It said:
HUB delivered a modestly lighter-than-expected FY25 result with EBITDA of $162.4m that was -2% vs. consensus but -0% BPe while NPAT and Statutory NPAT was ahead +4/5%. A lower implied tax rate contributed to the beat. AABS16 operating cash flow of $145.6m also beat expectations with underlying conversion increasing to 100%. HUB exited FY25 with an improved net cash position of $84.9m (vs. $58.1m exiting FY24) and again hinted at opportunities for bolt on acquisitions.
Looking ahead, the broker believes that the ASX tech stock is well-placed to achieve its funds under administration (FUA) target in FY 2026. This bodes well for its earnings growth over the next 12 months. It adds:
HUB remains on-track to meet its FY26 Platform FUA target of $123-$135bn and provided an update to the guidance – now $148-162bn incorporating its net flow momentum by FY27. R12M net flows of +$15.8bn and Xplore outflows of -$2bn would get us to $142.2bn – under the target before market movements. Flow parameters are also improving with remarks for +$14-17bn (prev. +$15bn pa).
HUB detailed +$2.6bn in the first 6 weeks of 1Q26. Plenty of growth here. The current run-rate is +24% vs. consensus. Other comments include: (1) +10% headcount growth and mid-teens total operating expense growth after factoring in salary increases; and (2) the medium-term EBITDA margin profile is expected to be high 40s for the Platform – with break-even for myprosperity towards the end of FY27.
Big return potential
According to the note, the broker has retained its buy rating with an improved price target of $125.00 (from $115.00).
Based on its current share price of $109.58, this implies potential upside of 14% for investors over the next 12 months. It concludes:
There's a pretty clear pathway to $148-162bn – with +38% growth at the mid-point – based on the strong acceleration in net flows from new licensee and adviser relationships (+32% FY25). Our revised estimates present EPSg of +46% on a strong start to FY26 and we maintain the Buy.
