** Jefferies says Regis Healthcare REG.AX is reshaping its portfolio by decreasing regional exposure and directing capital expenditure towards more efficient and lower cost metropolitan homes
** Brokerage hikes price target to A$9.3 from A$8.75, retains "buy" call
** Aged care operator on Monday announced sale of two homes in Far North Queensland, expects pretax gain of A$25 million ($16.55 million) in its FY26 results
** Jefferies notes the two homes have total 156 operational beds and were co's most regional homes in Queensland, with moderately higher agency staff
** Although reducing beds, we believe this sale improves the quality of the Regis portfolio - Jefferies
** Brokerage also flags the government will need to revisit current regulation if it is to incentivise capital growth in residential aged care like that of Regis' ops
** Stock up 27.7% so far this year, as of last close
($1 = 1.5101 Australian dollars)
(Reporting by Nikita Maria Jino in Bengaluru)
((Nikita.Jino@thomsonreuters.com;))