Persimmon PLC (LSE:PSN) shares have tumbled 46% in the last year and are likely to continue their downward trajectory, according to a leading American investment bank.
Citi in a note out earlier on Monday repeated its ‘sell’ advice on stock and didn’t pull any punches in doing so.
It said the house builder would continue to see “significant operational headwinds” as it battled tighter planning regulations.
“We believe the group is likely to remain a sector underperformer and the deteriorating free cash generation is unlikely to support higher cash returns," Citi said.
"As a result, we see little scope for valuation to recover to its historical premium multiple and risks are likely to remain on the downside.”
The shares closed the session off 1.7%, which was a better performance than the wider market, with the FTSE 100 down 2.5% in the wake of the collapse of the Silicon Valley Bank.