Broker snap: Prime Markets hails 'sterling' numbers at Persimmon

23rd Aug 2011 12:53

Prime Markets says that the dividend boost at house-builder Persimmon should support a break higher in the shares and reiterates its buy recommendation on the stock."Housebuilder Persimmon has today produced a sterling set of numbers, offsetting a revenue fall with a profits boost while reducing net finance costs and net borrowings," said head of dealing at Prime Markets, Richard Curr.Adjusted pre-tax profits climbed 52% to £59m, £39.4m last year, while revenue fell to £712.8m from £776.6m."While property sales and hotspots around the country are mixed, the company has expressed great confidence in its own strategy and in the potential of the market for the rest of the year with a substantial 33 percent dividend boost, and this is supported by the increase in both forward sales and current sales rates since the end of June," Curr said.The broker expects shares to pick up to 413p in the coming seven to ten days.By 12.53 on Tuesday, shares were trading 2.22% higher at 391.60p.BC