Persimmon (PSN)

Sector:

Household Goods

Index:

FTSE 100

1,316.00p
   
  • Change Today:
      12.50p
  • 52 Week High: 1,485.00
  • 52 Week Low: 960.40
  • Currency: UK Pounds
  • Shares Issued: 319.42m
  • Volume: 688,546
  • Market Cap: £4,203.59m
  • RiskGrade: 168

MJ Gleeson, Persimmon 'top picks' for Liberum

By Michele Maatouk

Date: Wednesday 25 May 2022

LONDON (ShareCast) - (Sharecast News) - Liberum said on Wednesday that Persimmon and MJ Gleeson were its top picks in the housebuilding sector as it noted sharp share price declines in the sector.
The broker said housebuilder shares have fallen around 30% in the year to date and 40% from their pre-pandemic level in February 2020, with the market pricing in a drop in house prices.

"We are convinced the gathering macroeconomic challenges will lead only to softening of the housing market, not collapse," it said, adding that its confidence is based on good affordability, significant savings and a strong labour market.

Liberum said it was cutting its 2023 estimates as it now expects a 1% increase in house prices in 2023, down from a previous forecast of 3% growth. It is around 7% to 8% below consensus, but still sees more than 30% total shareholder return upside in eight of the nine stocks its covers, and more than 50% in three stocks.

It said the market may be forgetting that the sector is extremely well capitalised, with net cash of around 18% of market capitalisation.

"Catalysts for better performance are a peak in inflation or rate expectations, M&A and enhanced shareholder returns," it said.

Persimmon and MJ Gleeson are Liberum's preferred stocks. It pointed out they are more exposed to markets where prices are less stretched, first-time buyers can work overtime to offset cost pressures and buyers may trade down to their affordable price points.

MJ Gleeson has a unique growth model selling low-cost housing, which is a much-undersupplied market, it said.

"Its unique social purpose, bringing home ownership to low earners, key workers and young people should help sustain a premium valuation. Its own customers can work overtime to offset higher costs and it may win share as some buyers move away from higher priced alternatives."

Liberum said Persimmon is a high-quality business with sector-leading returns and a strong balance sheet. It also has good exposure to northern markets and low-price points, where affordability is best.

Meanwhile, the growth prospects of Vistry's partnerships business are significantly undervalued, it said.

Liberum has a 'buy' rating on Barratt Developments, Bellway, Berkeley, Crest Nicholson, MJ Gleeson, Persimmon, Redrow, Taylor Wimpey, and Vistry.

Liberum is the house broker for MJ Gleeson.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Persimmon Market Data

Currency UK Pounds
Share Price 1,316.00p
Change Today 12.50p
% Change 0.96 %
52 Week High 1,485.00
52 Week Low 960.40
Volume 688,546
Shares Issued 319.42m
Market Cap £4,203.59m
RiskGrade 168

Persimmon Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
15.25% below the market average15.25% below the market average15.25% below the market average15.25% below the market average15.25% below the market average
33.33% below the sector average33.33% below the sector average33.33% below the sector average33.33% below the sector average33.33% below the sector average
Price Trend
29.49% above the market average29.49% above the market average29.49% above the market average29.49% above the market average29.49% above the market average
Sector averageSector averageSector averageSector averageSector average
Income
52.78% above the market average52.78% above the market average52.78% above the market average52.78% above the market average52.78% above the market average
36.84% above the sector average36.84% above the sector average36.84% above the sector average36.84% above the sector average36.84% above the sector average
Growth
99.01% below the market average99.01% below the market average99.01% below the market average99.01% below the market average99.01% below the market average
100% below the sector average100% below the sector average100% below the sector average100% below the sector average100% below the sector average

What The Brokers Say

Strong Buy 2
Buy 1
Neutral 11
Sell 1
Strong Sell 0
Total 15
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Persimmon Dividends

  Latest Previous
  Final Interim
Ex-Div 20-Jun-24 12-Oct-23
Paid 12-Jul-24 03-Nov-23
Amount 40.00p 20.00p

Trades for 28-Mar-2024

Time Volume / Share Price
16:38 31,174 @ 1,316.00p
16:35 126 @ 1,316.00p
16:35 397,082 @ 1,316.00p
16:35 888 @ 1,316.00p
16:35 670 @ 1,316.00p

Persimmon Key Personnel

Chair Roger Devlin

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