Persimmon upgraded to Buy from Neutral at Citi

In a sector note on UK Homebuilding, Citi analyst Ami Galla upgraded Persimmon (PSMMY) to Buy from Neutral with a price target of 1,450 GBp, down from 1,540 GBp. The firm said it remains positive on the sector’s multi-year cyclical recovery even as it expects “more sluggish improvement near term.” For Persimmon, Citi believes the cost headwinds and concerns on the pace of medium-term earnings recovery are “now well reflected in current valuation” and thinks the stock “should benefit from a broader housing cycle recovery.”

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