Hub24 Ltd (ASX: HUB) shares were on form again on Thursday.
The ASX 200 stock finished the session 14% higher at $98.45.
This means the investment platform provider's shares have risen 28% since this time last week.
Can the run continue? Let's see what Bell Potter thinks about this high-flying stock.
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What is the broker saying?
Bell Potter was impressed with Hub24's first-half results, highlighting that it outperformed on almost all metrics. The broker said:
HUB delivered a strong 1H26 result that outperformed on almost all fronts. Weakness resulting from cost timing differences in Technology Solutions was the one negative. However, Platform continues as the primary growth driver and to that end, the prior guidance range has been updated and narrowed. Management also reconfirmed an expectation for +18-20% FY26 operating expense growth; HUB tracking to the top.
Another positive that Bell Potter picked out was that its outlook parameters continue to improve. It adds:
FY27 FUA target was upgraded to $160-$170bn, with the mid-point supporting our forecasts. The lower point was brought in, and the range tightened. Prior guidance was for $148-162bn. Underpinning this is higher conviction around net inflows and +5% market growth. We had been watered down on +$20bn pa. but the upgrade now establishes this as the go-forward.
Current FUA of $129.8bn was also provided and implies net inflows of +$1.9bn, predicated on flat markets, with the run-rate improved +26%. Seasonal patterns could see +$4.6bn in the door 3Q26. Additional hires limited the leverage on variable cost. Comments indicate competitive wins are not yet factored into the net flows but is growing. The upgraded target band seems well within reach, based on those building blocks, and could ratchet up.
Should you buy this ASX 200 stock?
According to the note, Bell Potter has responded to the results by retaining its buy rating with a trimmed price target of $120.00 (from $125.00).
Based on its current share price of $98.45, this implies potential upside of 22% for investors over the next 12 months.
Commenting on its buy recommendation, Bell Potter said:
Our Buy rating is unchanged. Our key takeaway from the result was the large step up in existing adviser net inflows, suggesting share of wallet has only started to improve, and there was no concentrations. Adviser density has increased and AI is expected to lift deployment velocity for the new ecosystem. We upgrade our EPS +4%/+2%/+1%.
