JPMorgan upgrades Hub24 stock rating to Neutral as platform shows strong growth

Published 19/08/2025, 05:18
JPMorgan upgrades Hub24 stock rating to Neutral as platform shows strong growth

Investing.com - JPMorgan has upgraded Hub24 Ltd . (ASX:HUB) from Underweight to Neutral while significantly raising its price target to AUD101.00 from AUD43.00, citing the platform’s consistent outperformance in net flows.

The investment bank noted that Hub24 has grown its market share more than three-fold over the past five years, while competitor Netwealth has doubled its share during the same period, raising questions about the sustainability of these trends.

JPMorgan’s analysis determined that total household financial assets excluding property have grown at a 10-year compound annual growth rate (CAGR) of 7%, with an increasing portion moving into Wrap platforms, contributing to a Wrap funds under administration (FUA) 10-year CAGR of 11.5% and 5-year CAGR of 13.5%.

The firm expects Hub24 and Netwealth to continue gaining market share within the Wrap segment, particularly from large incumbents Macquarie and BT Financial, which still hold a combined 40% market share.

Based on these factors, JPMorgan has shifted its forecast to high-teens near-term FUA growth for Hub24, trending to mid-teens medium-term growth, projecting the company will reach approximately 18% market share within 10 years.

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