Persimmon PLC (LSE:PSN) was one of the best of the risers as UBS upgraded to 'Buy' ahead of a trading update next week.
Housebuilder shares have been under pressure recently due to worries about the impact of the rise in gilt yields on mortgage costs with Persimmon shedding 35% of its value since November.
UBS suggests this is too extreme, though it adds that how quickly affordability improves will be key to any recovery in the share price.
In next week’s results, investors should especially watch for comments about 2025 it says, with the Swiss bank looking for volumes to rise by 6% to 11,100 houses and margins to pick about by 20 basis points.
For the 2024 number, UBS is going for 10,500 completions, underlying profits of £376 million on margins of 14.1% with year-end net cash of £171 million.
Shares were up 1.8% today at 1,111p.