Shaw and Partners’ Jules Cooper Issues Buy Rating on Hipages (ASX:HPG) with AUD 2.80 Price Target

Sonal Goyal

25 August 2025 04:01 PM AEST

Shaw and Partners’ Jules Cooper Issues Buy Rating on Hipages (ASX:HPG) with AUD 2.80 Price Target

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Shaw and Partners analyst Jules Cooper issued a Buy rating with a AUD 2.80 price target, implying 117% upside.

Hipages reported FY25 revenue of AUD 83.1m, with free cash flow up 162% to AUD 5.6m.

FY26 outlook targets 10%–12% revenue growth and EBITDA margin of 24%–26%, supported by tech-driven expansion.

Hipages Group Holdings Ltd (ASX:HPG), the leading online tradie marketplace in Australia and New Zealand, has received a Buy rating from Shaw and Partners analyst Jules Cooper, with a target price of AUD 2.80, reflecting a significant 117% upside to the current trading level.

The analyst’s recommendation might have come on the back of Hipages’ FY25 full-year financial results, where the Group demonstrated resilience and efficiency in its operating model, delivering growth across key performance metrics and exceeding guidance on several fronts.

FY25 Performance

For the year ended 30 June 2025, Hipages reported total revenue of AUD 83.1 million, representing a 10% increase over FY24. Monthly recurring revenue (MRR) rose 14% to AUD 7.4 million, while average revenue per user (ARPU) surged 9% to AUD 2,267, underpinned by new pricing plans in Australia and the subscription model rollout in New Zealand.

The Group also achieved a record EBITDA margin of 24%, supported by operating leverage, and delivered free cash flow of AUD 5.6 million, a 162% improvement compared to the prior year.

Hipages attributed these results to strategic initiatives, including the successful migration to its single tradie platform (STP), the launch of new pricing plans in Australia, and the subscription model implementation in New Zealand.

FY26 Outlook and Strategic Roadmap

Looking ahead, Hipages is targeting revenue growth of 10%–12% and an EBITDA margin of 24%–26% in FY26, alongside free cash flow of AUD 8–10 million.

The company’s strategic roadmap centres on increasing tradie engagement and broadening its marketplace ecosystem. Key initiatives include:

Enhancing lead pricing, matching, and self-serve tools to improve user experience.
Introducing new software features to boost adoption and customer value.
Expanding into adjacent services to open new revenue streams.
Embedding AI technology across products and operations to strengthen platform scalability and efficiency.

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