Stockland (ASX:SGP) is well positioned for accelerating earnings growth, supported by improving residential momentum and a strong development pipeline, Jarden said in a Thursday note.

The investment firm said that the company's management is driving growth and diversification, while its 12-month forward price-to-adjusted funds from operations multiple of 19 times trades below large-cap peers, signaling upside amid improving market conditions and strong pipeline execution.

It shared three key takeaways from the company's results, highlighting accelerating residential growth, an expanding commercial pipeline focused on logistics, and strong funding flexibility that supports future growth.

The firm updated its earnings forecasts for fiscal year 2026 to fiscal year 2028 by 0.6% to 1.6%, with a higher target price driven by lower sector discount rates and improved medium-term growth in development and management.

Downside risks include weak near-term sales and settlements, underperforming MPC acquisition returns, and stalled progress on non-core asset sales, Jarden said.

The investment firm maintained Stockland's overweight rating while raising its price target to AU$6.80 from AU$6.35.