Oceania Healthcare's (NZE:OCA, ASX:OCA) progress in care suits holds potential for near-term upside in free cash flow growth and re-rating, Jarden Research said in a Nov.25 note.
The healthcare services provider reported a loss of NZ$0.024 per share for the six months ended Sept. 30, compared with earnings of NZ$0.049 per share a year earlier.
Loss for the period was NZ$17.1 million, reversing the NZ$35.2 million profit a year earlier.
Jarden believes that Oceania Healthcare's faster realization of deferred management fees for care suites provides potential for nearer-term upside in free cash flow growth.
Faster realization of the fees, progress on further development execution, and inventory sell-down "could re-rate OCA sooner, taking into account other factors," Jarden added.
The investment firm maintained the company's neutral rating but raised its price target to NZ$0.83 from NZ$0.80.