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Investing.com - Jefferies downgraded Hub24 Ltd . (ASX:HUB) from Hold to Underperform on Tuesday, while raising its price target to AUD84.00 from AUD80.00.
The downgrade comes despite Hub24 reporting strong fourth-quarter 2025 results, with platform Funds Under Administration (FUA) increasing by AUD10.2 billion to reach AUD112.7 billion, representing a 33.5% increase compared to the prior corresponding period.
Hub24 achieved record quarterly net inflows of AUD5.3 billion, exceeding consensus estimates of AUD4.9 billion, and benefited from a record positive market movement of AUD4.9 billion during the quarter.
Jefferies acknowledged that Hub24 is now leading in market share gains but expressed concerns about valuation, noting the stock trades at approximately 89 times forward earnings.
The investment firm increased its earnings estimates for Hub24 by 2% to 6% across the forecast period but ultimately downgraded the stock as it trades 16% above Jefferies’ price target.
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