Paragon Care (ASX:PGC) fiscal first-half results met expectations, with higher revenue and earnings before interest, taxes, depreciation, and amortization from last year, according to a Feb.28 note by Euroz Hartleys.

PGC reported that its earnings per diluted share in the fiscal first half rose to AU$0.008, from AU$0.0075 per diluted share a year earlier,

Euroz Hartleys notes PGC's revenue for the six months ended Dec. 31, 2024, was AU$1.85 billion, up 28% from AU$1.44 billion in the same period last year, due to the group capturing a greater share of the Australian and New Zealand pharmacy markets.

Paragon Care's net working capital increased during the first half of the year, driven by higher inventory levels and the ongoing integration process, Euroz Hartleys added.

Higher working capital pushed the company's net debt to AU$226.6 million, up from an average of AU$221 million. However, the financial services firm expects the debt to normalize in the second half.

Euroz Hartleys believes the company is fostering a "One Team" approach by focusing on cross-selling, improving operational efficiencies, reviewing its partner pipeline, and exploring acquisitions.

The firm maintained Paragon Care's buy ratings but raised its price target to AU$0.65 from AU$0.51.