Hub24 is proposing to acquire leading cloud-based SMSF administration software provider Class Ltd ((CL1)) for an implied -$385m, funded mainly by scrip. While having some misgivings over price, Morgans is prepared to back the longer-term strategic direction of Hub24.

The analyst doesn't incorporate the transaction into forecasts as yet and maintains the Add rating and $34.20 target price.

Sector: Diversified Financials.

Target price is $34.20.Current Price is $32.77. Difference: $1.43 - (brackets indicate current price is over target). If HUB meets the Morgans target it will return approximately 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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