Summerset Group Holdings (NZE:SUM, ASX:SNZ) provided a "pleasing" second-quarter sales update and is well positioned to deliver on full-year expectations for independent, serviced, and care resales volumes, Jarden said in a Tuesday note.

The company reported the sale of 448 occupation rights in the second quarter, up from 402 occupation rights a year earlier. It also cut its New Zealand 2026 build target by 50 homes to a range of 600 to 650, while maintaining its Australian forecast of 100 to 150 homes.

Jarden forecasts the delivery of 668 units and beds in New Zealand, and 122 homes in Australia.

Summerset's new sales of independent living units were flat compared with the first half of 2025, but are expected to see an uptick in the second half of this year. The company further noted that first-half refinancing margins held up broadly in line with year-ago levels, which provides some upside potential to Jarden's forecasts if that performance continues through the remainder of the year, the equity research firm said.

Jarden expects cash conversion to remain a factor when Summerset reports first-half results on Aug. 27, it added.

The investment firm maintained its neutral rating on Summerset with a price target of NZ$10.52.