Persimmon is holding at key support and showing signs of attracting value hunters. I also note the on the relative ratio (Persimmon share price / UKX). The price of sterling has been a drag on the shares and with GBP moving higher yesterday it could offer some relief to domestic stocks. Technically and fundamentally, Persimmon looks good value here.
Persimmon currently ranks towards the top of our fundamental model with exceptional scores on value, profitability, momentum and quality metrics. The shares have underperformed the market over the past 1 to 3 months but we do not expect this to continue.
Ranks in the top 5 of our fundamental ranking model.
Canaccord Genuity reiterated ‘Buy’ advice on the 20th August with a price target of 2720p.
The business continues to produce steady cash flow and boasts a healthy dividend.
Sales have slowed in recent months.
Peel Hunt reiterated its hold rating on the 1st May 2019 with a price target of 2025p.
Complaints have been raised about the quality of Persimmon homes, this may act as a drag in the short term.