Charlie Campbell, an analyst from Stifel Nicolaus, maintained the Buy rating on Persimmon. The associated price target is p1,500.00.
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Charlie Campbell has given his Buy rating due to a combination of factors that highlight Persimmon’s strong market position and financial performance. The company has reported a private sales rate increase of 3% compared to the previous year, indicating robust demand despite a slight slowdown attributed to the Budget. Management’s expectation of meeting profit forecasts for FY25 further solidifies confidence in the company’s operational stability.
Additionally, Persimmon’s strategic focus on the northern regions and first-time buyers positions it well to capitalize on market segments expected to outperform. The company’s limited exposure to fire safety remediation costs and superior return on equity compared to the sector justify its premium valuation. Falling mortgage rates and relaxed lending criteria also provide a favorable backdrop for future growth, making Persimmon an attractive investment opportunity.