Highlights

  • Two brokers issue favourable ratings for Summerset Group.
  • Price targets range from NZD 15.25 to NZD 16, reflecting potential upside of 30–36%.
  • Over half of New Zealand sales come from outside Auckland, Wellington, and Christchurch.
  • FY25 forecast remains on track for 650–730 home deliveries.

Summerset Group (NZX:SUM) has attracted attention from the broker community, with two analysts issuing positive ratings for the company. One broker assigned an outperform rating with a price target of NZD 16.00 per share, representing a potential 36.17% gain, while another broker issued a buy rating with a target of NZD 15.25, up 29.79% from current levels.

Recent financial metrics

On 7 October, the company reported its third-quarter 2025 metrics for sales of occupation rights, achieving a total of 420 sales. This figure comprised 176 resales and 244 new sales.

Summerset CEO Scott Scoullar expressed satisfaction with the quarter’s results, noting that the company has maintained its sales momentum from the first half of the year. “Our diverse portfolio remains a key strength, with more than 52% of New Zealand sales coming from outside Auckland, Wellington, and Christchurch,” he said. Among the highest-selling villages were Summerset Boulcott in Lower Hutt, Summerset by the Dunes in Pāpāmoa, and Summerset Palms in Te Awa.

The company is on track to deliver its full-year 2025 forecast of 650–730 homes. In Victoria, Australia, Summerset is set to commence its fourth village in Oakleigh South, marked by a sod-turning event later this month. Additionally, the first villas at Chirnside Park are expected to be completed, with residents moving in during Q2 2026 when the village officially opens.

Summerset also reported its half-year results for 2025. The company recorded an underlying profit of NZD 106.6 million, up 19% compared with the same period last year. Reported profit after tax (IFRS) reached NZD 127.2 million, representing a 26% increase. Total assets stood at NZD 8.7 billion, up 18%, while operating cash flows increased 19% to NZD 228.7 million. The company maintained a gearing ratio of 36.7%.

During the first half, Summerset delivered 334 new units across New Zealand and Australia, achieving 692 sales of occupation rights. The development margin for the period was 29.4%. Resident satisfaction remained exceptionally high at 97%, while staff engagement maintained a rating of 8.2 out of 10. An interim dividend of NZD 0.113 per share was declared.