Morgans holds some caution around Hub24's results leading into the February reporting season, though retains its Add rating on a medium-term view. A near-term risk is thought to be the elevated investment necessary for the company's 'platform of the future' strategy.

The broker sees ongoing structural growth for both Hub24 and peer Hold-rated Netwealth Group, though leans toward the former on its ability to close the operating leverage gap and the optionality within wealth accounting platform Class.

Forecasts are reduced on higher Class and Platform opex and Morgans target falls to $27.80 from $28.05.

Sector: Diversified Financials.

Target price is $27.80.Current Price is $24.89. Difference: $2.91 - (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).

© 2023 Acquisdata Pty Ltd., source FN Arena