The ASX All Ordinaries Index (ASX: XAO) is down 0.2% on Friday morning, but compared to this time last year, the index is 11.6% higher.
However, there is one ASX All Ords stock that is piquing extra interest from analysts.
Summerset Group Holdings Ltd (ASX: SNZ) develops, owns, and operates integrated retirement villages. The company receives a majority of its revenue from the New Zealand Ministry of Health, which subsidises fees for eligible aged-care residents.
At the time of writing on Friday morning, the company's share price is 0.21% higher. Over the past six months, the Summerset Group share price has dropped 11.36%, and over the year, it is 4.79% lower.
At the time of writing, the company's share price is 2.54% higher on the NZX, at NZ$10.65.
Here's what Macquarie Group Ltd (ASX: MQG) thinks of the stock.
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Huge upside ahead for Summerset Group shares
In a recent note to investors, the broker has confirmed its outperform rating on the ASX All Ords stock and its shares.
It also raised its target price on the shares to NZ$16.00, up from NZ$15.75 previously. At the time of writing, that represents a whopping potential 50.2% upside for investors over the next 12 months.
Since the company is dual-listed on the ASX and the NZX, local Australian investors could also benefit from any potential upside.
"Valuation: PT lifted to $16.00 (from $15.75) reflecting roll forward of DCF partially offset by lower EBITDA on higher head office costs," Macquarie said in its note.
"Ongoing disclosure enhancements including gearing track a positive. Outlook remains strong for NTA accretion and improved cash flows with ongoing development execution. Sales commentary and contracts on hand positive, much needed given elevated stock levels to work through."
What else did Macquarie have to say?
Macquarie was pleased with Summerset Group's recent H1 FY25 results announcement and thinks the company is set up well to deliver on medium-term growth targets.
The group's underlying profit was 19% higher half-on-half despite a "tough backdrop", and sales were 18% higher for the six-month period.
"SUM remains on track for FY25 build guidance (600-650 NZ, 50-80 Aus). NZ likely to lift in FY26 given main building deliveries, while SUM we think NZ may hold between 600-700 med-term," the broker said.
"This will be supplemented by Aus growth with SUM reiterating 300 p.a. target by FY27 with construction to commence at its fourth village in 4Q25 providing enough sites to deliver on targets, while land bank is sufficient to maintain this cadence without net investment. SUM highlighted delivering on current developments would add ~$12.30 (~$10 to come) to NTA by maturity."
