Shares in Persimmon PLC (LSE:PSN) opened about 2% higher at 1,443p after the house builder said was on track to deliver profits towards the upper end of market expectations.
In a note following Persimmon’s pre-close trading update for the year to December 2025, Panmure Liberum said the group was leading the sector on key measures of demand, despite what it described as a still-challenging housing market.
The broker reiterated its 'buy' rating on the shares, with a target price of 1,536p.
Net private sales per outlet rose to 0.59 homes a week from 0.57 in 2024, showing that demand per sales site is edging higher.
When bulk sales, typically to housing associations or large investors, are included, the sales rate was stable at 0.70.
Average selling prices on private homes also moved higher, rising 5% over the year. That suggests the company has been able to push through price increases without stalling demand, an important signal at a time when mortgage affordability remains tight for many buyers.
The forward sales book, the value of homes already sold but not yet completed, increased slightly to £1.17 billion at the end of December, up from £1.15 billion a year earlier.
This provides a degree of visibility over revenues heading into 2026.
Panmure highlighted Persimmon’s continued expansion of its outlet network and further investment in land, which underpins future building activity.
The group’s average number of outlets rose during the year, alongside additions to its land bank, the stock of plots it owns for future development.
Taken together, the broker said this “broadly based progression” meant full-year 2025 profits were likely to come in towards the top end of expectations.
Persimmon has guided to profit before tax of between £415 million and £440 million, compared with a market consensus of about £428 million.
Panmure Liberum added that Persimmon’s competitively priced homes and vertically integrated model, where it controls much of the construction process itself, should help it continue to outperform rivals as the housing market gradually stabilises.