Liberum Capital has upgraded its recommendation on house builder Persimmon (LON:PSN) to ‘buy’ from ‘hold’, stating that the market’s search for yield makes it stand out.
The broker added: “We are confident that Persimmon will achieve the payments pledged because of management’s incentive scheme, but also because its long landbank means it could cut land spending dramatically to boost cash flows and the strategic landbank should protect margins too.”
Analysts have upped their target price to 2,100 pence per share (from 1,468 pence).
Liberum also reaffirmed ‘buy’ ratings on sector peers Bellway (LON:BWY), Berkeley (LON:BKG) and Gleeson (LON:GLE) and raised its target prices to 3,125 pence, 3,155 pence and 660 pence respectively.
At 3:28pm: (LON:PSN) Persimmon PLC share price was +41.5p at 1838.5p
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