Persimmon PLC's (LSE:PSN) comments about rising costs on Wednesday have not persuaded US bank Jefferies to change any of its estimates but it did trim its price target to ‘derisk its margin forecast for 2025’.
National Insurance hikes will have an impact on the housebuilder’s workforce and lower-margin mix of deliveries, but Jefferies says it is happy to be ahead of forecasts on both completions and margin for the next few years.
Assuming build cost inflation towards the upper end of guidance and house price inflation only mid-range of current levels, Jefferies expects profits this year of £382 million, £492 million in 2025 and £649 million in 2026.
All of its estimates are well above the corresponding consensus estimate.
Jefferies's price target is 1,973p, down from 2,055p though ‘Buy’ is still the recommendation.
Shares today were down 1% at 1,329p.