The HUB24 Ltd (ASX: HUB) share price will be one to watch on Thursday.
This follows the release of the investment platform provider’s first quarter update this morning.
What did HUB24 announce?
HUB24 has continued its positive form in FY 2022 and reported further strong growth in its funds under administration (FUA).
According to the release, the company achieved record first quarter platform net inflows of $3 billion for the three months ended 30 September.
As a result, at the end of the period, total FUA reached $63.2 billion. This comprises platform FUA of $45.4 billion, which is up 139% year on year and 9.5% since the end of June, and Portfolio, Administration and Reporting Services (PARS) FUA of $17.8 billion.
Management notes that this record quarter comes on the back of a record FY 2021 net inflow result. It feels this is a testament to HUB24’s market leadership position and continued focus on delivering innovative solutions and customer service excellence.
The company also revealed that, according to the latest Strategic Insights data, it ousted Netwealth Group Ltd (ASX: NWL) to take the top spot for share of net inflows for the June quarter. Positively, this means HUB24’s market share has increased to 4.3% from 2.1% over the 12 months to 30 June putting it in 7th position.
Looking ahead, management appears optimistic that the fund inflows will continue. It advised that its new business pipeline continues to grow with 30 new licensee agreements signed during the quarter. This includes new agreements with self-licensed advisers, boutiques, and an advice aggregator.
Is the HUB24 share price in the buy zone?
One leading broker that appears to believe the HUB24 share price is in the buy zone is Credit Suisse.
Earlier this week the broker retained its outperform rating and lifted its price target to $34.00.
Based on the current HUB24 share price, this implies potential upside of 18% over the next 12 months.
Should you invest $1,000 in HUB24 right now?
Before you consider HUB24, you’ll want to hear this.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Hub24 Ltd. The Motley Fool Australia has recommended Hub24 Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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