Persimmon PLC (LSE:PSN) has been rated as its Top Pick among UK housebuilders by US broker Jefferies.
On its calculations, the share price currently assumes no improvement to its return on equity from 2024.
“And while the recent rise in yields bring an uncertain trading environment, we remain comfortable to keep ahead of consensus and forecast improving ROE.
“With scope for upside in the outer years from more profitable newer sites and/or pull forward of later year deliveries to supplement volumes, we see support to forecasts from more than just macro drivers.”
Target price is 1,890p, down slightly from 1,905p previously.
Shares today were up 1.7% at 1,222p.