Persimmon: Liberum maintains 'hold' rating.

(CercleFinance.com) - Liberum maintains its "hold" rating on the Persimmon stock, along with its target price of 2,382 pence, after the British real estate group published interim profit before tax that exceeded its estimate by 4%.


“This beat was largely driven by a rising operating margin which reached 27.6%, as the Company continues to bring through cheaper land,” Liberum explained, which itself was expecting a margin of 26.2%.

“We expect consensus to rise 2-3% due to the continuing strength of operating margins and the resilience of the underlying market since the beginning of July,” the broker added.

Although the share is trading at a premium of 30% compared to its sector, Liberum considers this valuation to be justified by a high 25% return on equity (ROE) and management dedicated to returning capital (to shareholders).



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