Persimmon: Still the most resilient name in sector. New PO 1,220p

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Persimmon: Still the most resilient name in sector. New PO 1,220p

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Persimmon

Still the most resilient name in sector.

New PO 1,220p

Reiterate Rating: BUY | PO: 1,220 GBp | Price: 1,119 GBp

Revise down FY27 estimates on build cost challenges 18 June 2026

We revise our estimates for Persimmon in FY27/28. Persimmon has a good geographic Equity

presence (more to the North) and more affordable products (average selling price c.15%

below other volume builders). That said, when facing a higher build cost and potential

Key Changessluggish consumer confidence, Persimmon will not be immune to challenges on margin.

We now expect 100bps EBIT margin decline to 13.2% in FY27 (vs +20bps margin (GBp) Previous Current

increase previously) before resuming margin growth in FY28. A better land margin would Price Obj. 1,300.00 1,220.00

help but the impact is limited, in our view. Our earnings will be lowered by c.7% on 2026E Rev (£m) 3,816.6 3,879.8

average from 2026-28e. We believe Persimmon could still realise some volume and 2027E Rev (£m) 4,010.6 4,029.7

pricing growth. New PO is lowered by 6% to 1,220p/US$32.70. See estimate changes in 2028E Rev (£m) 4,367.4 4,244.1

Exhibit 2. 2026E EPS 99.74 99.56

Still delivering the highest return. Buy reiterated 2027E2028E EPSEPS 106.45125.07 111.8096.74

Persimmon so far is the only homebuilder that delivered a growth in all key operating 2026E DPS 61.04 60.93

metrics including sales rate, order book and average outlet number. See table below.

They still see an LSD underlying price growth and with no material change on incentives Allison Sun >>

(partially thanks to their competitive pricing in our view), which is powerful in offsetting Research Analyst

some cost inflation pressure.