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Builders and building materials

Persimmon shares rise 3% as forward sales growth and profit guidance reaffirmation reassure investors

Persimmon PLC (LSE:PSN) shares rose 3% to 1,055p after the housebuilder's annual meeting trading update reassured investors with a 7% increase in private forward sales and an unchanged profit guidance, prompting Liberum to leave its own estimates unaltered.

Panmure Liberum, which carries a 'buy' rating and 1,694p target price on the stock, said the update highlights the benefits of Persimmon's strategic positioning in the UK housing market.

It pointed in particular to a 5% increase in private average selling prices that the broker said reflects the group's attractively priced product and favourable geographic mix.

The broker noted that net private sales per outlet per week rose to 0.76 from 0.74 a year earlier, while average outlets increased from 268 to 273 following ongoing investment in the business.

Panmure flagged that management acknowledged mounting build cost inflation pressures, but said the board's confirmation that profit before tax remains on track to meet consensus, with completions of between 12,000 and 12,500 homes expected in 2026, was the key reassurance for the market.

Private forward sales stood at £1.80 billion as at 26 April, up from £1.68 billion at the same point last year.

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