Stifel Nicolaus analyst Charlie Campbell maintained a Buy rating on Persimmon (PSN – Research Report) today and set a price target of p1,430.00.
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Charlie Campbell has given his Buy rating due to a combination of factors that highlight Persimmon’s strong performance and potential for growth. The company’s full-year adjusted profit before tax exceeded expectations by 3% and showed a 10% increase from the previous year, marking the first instance of year-on-year profit improvement in the current cycle. This positive financial performance is attributed to strategic actions taken during the downturn to position the company for growth.
Additionally, Persimmon has demonstrated improvements in several key areas, including higher quality scores, better planning success, and management’s confidence in achieving a 3-8% volume growth. The company has also seen improvements in pricing and is exploring new building methods to enhance output. Despite the broader sector being oversold, Persimmon remains a preferred stock due to its focus on the northern regions and first-time buyers, segments expected to outperform the market. The company’s relatively small fire safety remediation provision further strengthens its position as a top pick in the industry.