Netwealth rallies after Q1 result as UBS says stock 'oversold'
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The news: Investment platform Netwealth was one of the top performers on Friday after announcing record first-quarter net flows on Thursday.
The numbers: Netwealth shares were up 5.15% to $32.46 at 11:58am AEDT, having added 19.51% over the last 12 months. The stock ended 0.8% higher after posting its Q1 figures on Thursday.
The context: UBS analyst Shreyas Patel said Netwealth's custodial funds under administration of $119.8 billion was "slightly softer than expected" but adviser productivity metrics remain strong with account growth of 13.7% compared to the prior corresponding period.
UBS retained its price target of $33.50 and 'neutral' rating but noted that the stock has underperformed rival Hub24 by 10% since its FY25 result, which appears "relatively oversold" in the context of its exposure to collapsed managed investment scheme First Guardian.
The source: UBS research
