Persimmon PLC (LSE:PSN)’s less-than-optimistic outlook during Tuesday’s annual earnings call has cast a cloud on the market’s stance on the FTSE 100 housebuilder.
Chief executive Dean Finch was at pains to cast a positive light on his company’s profits more than halving, but he was unable to get around the fact that the near-term outlook is cautious and market conditions are set to remain subdued in the months ahead.
“A very downbeat performance from Persimmon's CEO did little to lift the share price or the spirits of investors on a very wet morning in March,” said RBC.
Analyst Anthony Codling added: “The repeated refrain was 'it's tough out there' and it seemed to us that the tough market and operating environment had taken the spring out of Persimmon's step.
“This may lead to some overlooking the undoubted progress the group has made on build quality and customer service, but when the company's cheerleader sends the signal that the glass is half empty, it's difficult for investors to see it as half full.”
RBC has a ‘sector perform’ rating on Persimmon stock with a 1,475p price target against a 1,325p publication price.