Berenberg raises target price on Persimmon, keeps 'hold' rating

13th Nov 2026 10:49

(Sharecast News) - Analysts at Berenberg raised their target price on housebuilder Persimmon from 1,150p to 1,240p on Friday after lifting their 2026-27 earnings per share estimates by an average of 2% following the group's third-quarter trading update.

Berenberg stated that while FY26 pre-tax profit growth of 3% "may not appear to be the most exciting result" on paper, it should be "seen as impressive given the challenging market conditions" faced during the year and said it "clearly

represents an operational outperformance versus its peer group".

However, with cost pressures continuing to linger, the German bank expects a broadly flat profit result in FY27. Despite Persimmon's strong performance over the past twelve months, Berenberg reiterated its 'hold' rating on the stock due to its valuation, which currently stands at a premium to sector peers.

Persimmon, which does not publish a full set of third-quarter results, reported that its year-to-date sales rate of 0.79x was 4% higher than a year earlier, while its total forward sales book edged up 1% year-on-year to £2.8bn. Management added that it remains on track to deliver FY26 pre-tax profits in line with market consensus of roughly £456m, implying 2% annual growth alongside volume growth of around 5%.

For FY27, Persimmon expects further volume growth, though it cautioned that build-cost headwinds and higher finance costs will limit near-term profit progression. Berenberg forecasts pre-tax profits of £457m in 2026 and £461m in 2027, representing growth of 3% and 1%, respectively.

Berenberg also noted that while Persimmon welcomed the government's new "Your First Home" scheme, the timing of its launch means any material financial impact was more likely to be felt from 2028 onwards rather than in 2027. On Berenberg's updated FY26 forecasts, Persimmon trades on 1.2x tangible net asset value and 13x earnings per share.

Reporting by Iain Gilbert at Sharecast.com