In Brief: Hub24, Singular Health & Articore Group

Weekly Reports | 10:00 AM

This week's In Brief uncovers upgrades for Hub24, a micro-cap with a potential large US market to conquer and Redbubble reinvented for growth.

• Platform operator Hub24 surprises, yet again
• Singular Health transitions to the cloud, opening major US growth options
• Restructured and reinvented Articore looks to be turning the corner

By Danielle Ecuyer

This week's quote comes from RBC Capital:

"While we don’t wish to place too much weight on any single month of labour force data, the picture we are left with here is not consistent with the RBA's base case (4.4% UR over the entirety of their forecast horizon through to Dec-27).

In our view, the trend data suggest the labour market looks tight here, likely sub-NAIRU, which doesn't make the RBA's job any easier heading into 4Q CPI next week against a backdrop of ongoing capacity constraints across the supply side of the economy.

We retain our base case call that the RBA will not hike rates this year, but freely admit to feeling increasingly nervous about this call. Today’s data adds further risk that the RBA will be forced into a fresh hiking cycle."

Hub24 keeps on keeping on

The December quarter update from platform operator Hub24 ((HUB)) showed again the strength and resilience of the business model cum expansionary strategy.

It also triggered two upgrades from brokers that previously rated the shares Neutral/Hold.

As highlighted by numerous analysts, record net flows were achieved of $5.6bn and sat well above consensus at $4.7bn, arising from high inflows and stable outflows. Funds under administration at $127.9bn equally beat, including a positive market movement of $368m or 0.3% of opening funds.

Pro forma funds under administration targets for FY27 were guided to $148bn-$162bn, with the 1Q26 investor day inferring net flows and market movements were ahead of assumptions from management.

Moelis comments the latest quarterly update confirms momentum has been sustained over the second half of 2025 and gives greater confidence around growth.

The analyst is keen to stress Hub24 has a good track record of robust performance against its funds under administration targets.

Adviser growth eased over the quarter but lifted 8% y/y, with the launch of Lifetime Retirement Solution with TAL due in 2H26. The latter is positioned to assist superannuation clients in pension phase to retain funds on the platform.

Adjusting for management's investor day commentary, Moelis lifts FY26 cost base estimates to around 18% from 16%, with the reinvestment viewed positively to assist with maintaining future funds under administration growth.

Higher cost assumptions result in slightly lower EPS forecasts for FY26 and FY27 by -1.3% and -1.1%.

Target price is lifted to $118.04 with an upgrade in the rating to Buy from Hold on the share price weakness in the run up to the quarterly update.

Canaccord Genuity also upgraded to Buy from Hold, lifting its target to $115.15 from $114.95 on what this analyst describes as a marginal quarterly beat.

Canaccord flags the platform is expected to continue to increase market share and the recent share price weakness is seen offering an opportunity for investors.

Swift FDA clearance places Singular Health in the growth seat

Research as a Service (RaaS) offered a deep dive into Singular Health Group ((SHG)), with a market capitalisation of $82m.

This med-tech company concentrates on ensuring the compatibility of medical scans like X-rays, CT and MRIs can be securely accessed across different healthcare systems.

Singular’s main product is 3DICOM, software that facilitates the viewing and transfer of images between systems using a cloud-based platform which recently received FDA approval.

The software offers value for its managed service organisations, referred to as MSOs (providers of administrative, operational, and technology services to groups of medical practices, such as billing, IT systems, compliance, and data management, allowing doctors and clinics to focus on patient care rather than back-office functions), as well as health plan clients.

The software removes the cost burden by lowering the number of duplicate scans that are taken across different medical services post hospital care.

Under the current US healthcare system, the inability to transfer imaging means new images are taken after a patient leaves a hospital for follow up care with primary physicians, specialists and clinicians, the analyst explains.

Homing in on the characteristics, Singular has had FDA clearance for its desktop 3DICOM software since October 2022, with the January 13 FDA clearance for the cloud product, achieved in 40 days post submission, paving the way for commercial scalability to an enterprise grade cloud platform.

Cloud-based software also removes the friction from on premise hardware customer adoption which requires installation on all workstations. The new cloud product allows access via a standard web browser.

RaaS emphasises the speed of FDA clearance reinforces Singular’s data integrity, the latency and performance, the strength of cybersecurity features, as well as the accuracy, reliability and suitability of the tool to the viewer.

Singular inked its first major US commercial deal with Provider Network Services (PNS) in 2025, an MSO that works across health insurers, primary care providers and specialists.

The FDA approval expanded to ‘high-volume’ modalities of X-ray and ultrasound, in addition to CT, MRI and PET that were already covered under the previous FDA clearance on the desktop product.

The latter has higher rates (US$300-US$2000-plus) but represent only 25% of total imaging volumes in the US. The ‘high-volume’ basic modalities secured in the recent clearance have lower rates and represent the balance of diagnostic imaging volumes.

Singular has achieved full coverage in a cloud software offering which is a necessity for widespread enterprise adoption.

RaaS does not offer a rating or target price or valuation, but the analyst owns shares.

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