ASX technology stock Hipages Group Ltd (ASX: HPG) is trading close to its 12-month low. This makes it a compelling buy, according to the analyst team at Shaw and Partners.
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Outlook impresses analysts
Hipages was among the companies which presented at Shaw and Partners' recent TechRise conference held in Sydney, with founder and Chief Executive Officer Roby Sharon-Zipser apparently delivering a "confident" update.
The Shaw and Partners research note issued this week goes on to say:
FY26 guidance was reiterated, with management noting softer subscriber volumes but strong yield trends and another price increase from 1 July tied to new AI-enabled products. Management also appeared increasingly confident that growing job management adoption, disciplined cost control and AI-driven efficiencies can support structurally higher retention, monetisation and margins, while positioning AI as a competitive advantage supported by proprietary data and trusted marketplace infrastructure.
The Shaw report says Hipages management acknowledged that the second quarter had been "tough". However, also noted the third quarter was better, and expects the fourth to further improve on that.
While Hipages said growing volumes was difficult, "stronger lead pricing and subscription upgrades are supporting improved yield outcomes despite softer volume trends''.
Hipages is planning to increase its pricing from July 1, and added that premium offerings might not be included in base subscriptions.
The Shaw report says:
Management said several AI capabilities 'may not be part of the subscription' and instead become "add-ons, so expansion revenue.' The upcoming AI virtual assistant was framed as incremental monetisation rather than bundled functionality.
Diversification in train
Hipages also recently acquired a majority stake in VIZ Insurance – a digital first insurance provider which specialises in providing insurance for tradespeople.
Shaw said regarding that deal:
Management positioned the VIZ Insurance acquisition as a fast-track entry into embedded financial services rather than a standalone insurance investment. The acquisition adds ~4,500 insured trade businesses, expands HPG's serviceable customer base and provides AFSL capability not previously held internally. Commentary also suggested VIZ could become a broader platform for future lending and financial products over time.
Hipages' guidance is for revenue of $90-$91 million, with free cash flow of $8-$10 million.
Hipages shares were changing hands for 74 cents on Wednesday, well down on the high over the past 12 months of $1.50.
Shaw and Partners has a price target of $2.50 on the shares, implying a return of well over 200%.
The company is valued at $101.3 million.
