Macquarie forecasts this $3.4 billon ASX healthcare share is set surge 33%

Macquarie tips material outperformance from this ASX healthcare share in 2026.

| More on:
A happy elderly woman smiles and cheers as she looks at good investment news on her laptop.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Summerset Group Holdings Ltd (ASX: SNZ) is highlighted by Macquarie Group as a promising investment in the ASX healthcare sector amid strong demographic tailwinds in the retirement village sector.
  • The New Zealand-based company's growth is underpinned by a robust development pipeline aimed at meeting the rising demand for retirement units.
  •  1,800 retirement units were built in New Zealand in 2024 with a projected need for 2,000 units annually over the next decade.

Looking for a large-cap ASX healthcare share that's forecast to deliver some potentially outsized gains in 2026?

Then you might want to have a look into Summerset Group Holdings Ltd (ASX: SNZ).

The dual-listed New Zealand based company develops, owns, and operates integrated retirement villages in New Zealand and Australia.

Summerset shares closed yesterday trading for $11.09. In thin trade today, shares are down 1.7%, trading for $10.90 apiece (or NZ$11.75 on the NZX.)

This sees the ASX healthcare share commanding a market cap of NZ$2.98 billion, or AU$3.43 billion.

Summerset shares struggled for much of the year and remain down 9.2% in 2025. But the stock has been on the rebound trail since early October, with shares now up 15.7% from the 3 October close.

And according to the analysts at Macquarie Group Ltd (ASX: MQG), the year ahead should see the Summerset share price continue to charge higher.

Herer's why.

Should you buy the ASX healthcare share today?

In a new report covering the New Zealand retirement village sector, Macquarie cites research from JLL noting that 1,800 retirement units were built in the nation over the 2024 calendar year.

According to Macquarie:

This takes total RV stock to ~43,600 (ex care), which is equivalent to a 14.7% penetration rate for people aged 75+ based on cohabitation rates and not excluding those which will reside in care

Looking to the growth market ahead for ASX healthcare share Summerset, the broker said, "Demographic tailwinds remain strong which will underpin execution of development pipeline across the sector while a shortfall will exist."

Macquarie noted:

Over the next decade, a further ~175k people will enter the 75+ demographic which based on current penetration would make up around 2,000 units p.a. of incremental demand (net, while gross will be higher with decommissions), or a 3.8% CAGR.

Out of the listed retirement village developers and operators in New Zealand, Macquarie said, "We think Summerset has the most upside given track record of development execution."

The broker has a 12-month price target of NZ$16.00 on Summerset shares. That's 33.0% above the current share price on the NZX.

As for risks that could see the dual-listed ASX healthcare share struggle to achieve those gains, Macquarie noted those include "quantum and speed of improvement in housing market conditions, and associated impact on sales including St Johns".

Macquarie added, "Success and speed of ramp-up in Australia is a key driver of growth in the medium to long term."

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Broker Notes

A man has a surprised and relieved expression on his face.
Broker Notes

Bell Potter says this ASX 300 stock is dirt cheap with 30%+ upside

The broker thinks the market is under-appreciating this stock.

Read more »

A man sitting at his dining table looks at his laptop and ponders the CSL balance sheet and the value of CSL shares today
Broker Notes

Buy, hold, sell: ANZ Bank, Monadelphous, and Northern Star shares

Do analysts think these shares are good picks right now?

Read more »

A man takes his dividend and leaps for joy.
Broker Notes

Broker tips another 114% upside for this surging ASX All Ords gold share

A leading broker forecasts another year of outsized gains from this surging ASX gold stock.

Read more »

A man with a wide, eager smile on his face holds up three fingers.
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to buy these shares.

Read more »

Miner and company person analysing results of a mining company.
Broker Notes

Buy this 'unique' ASX mining stock for a 17% return: Bell Potter

Let's see why the broker is bullish on this stock.

Read more »

three men stand on a winner's podium with medals around their necks with their hands raised in triumph.
Best Shares

Experts rate 3 ASX 200 stars of 2025: Is there more growth ahead?

These shares were the highest risers within their respective sectors last year. Experts reveal their ratings.

Read more »

Smiling man sits in front of a graph on computer while using his mobile phone.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Broker Notes

These ASX 200 stocks could rise 20% to 35%

Analysts think these shares could be heading significantly higher.

Read more »