Persimmon: Liberum maintains 'buy' rating after results
(CercleFinance.com) - Liberum confirms its "buy" rating on the Persimmon share, along with its target price of 2,800 pence, after the British home builder published H1 adjusted profit before tax of 513 million pounds, in line with its estimate.
"This was achieved in spite of management deliberately slowing sales to focus on rectifying quality," the broker notes, pointing out that the group's operating margin improved by 0.9 point to 29.1%, beating its estimate by 0.2 point.
"The outlook remains firm as the strong sales rate has continued beyond June," said Liberum, considering that the share's premium relative to the sector is justified by a return on equity (post-tax) of 28.1%.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
"This was achieved in spite of management deliberately slowing sales to focus on rectifying quality," the broker notes, pointing out that the group's operating margin improved by 0.9 point to 29.1%, beating its estimate by 0.2 point.
"The outlook remains firm as the strong sales rate has continued beyond June," said Liberum, considering that the share's premium relative to the sector is justified by a return on equity (post-tax) of 28.1%.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.