Bank of America Raises BofA Securities PT to $765 from $690

Bank of America Raises BofA Securities PT to $765 from $690

Bank of America Securities has upgraded its rating for Persimmon Plc (LSE:PSN) to "Buy" from "Neutral" and raised its price target to GBP13.50 from GBP12.60. The upgrade is based on the company's attractive valuation following recent share price weakness [1].

Persimmon, a $5.2 billion market cap homebuilder, has seen its shares decline 8.7% in the past week, making its valuation compelling after the recent pullback. The company is currently trading at 1.1x 2026E P/B and 10.8x P/E versus ROE implied P/B at 1.2x and P/E at 12.8x [1].

BofA highlighted that Persimmon’s more affordable products, which are 15% cheaper than peers, and its high presence among first-time buyers position the company to benefit from further interest rate cuts. The company maintains a strong financial position with a healthy current ratio of 4.71 and more cash than debt on its balance sheet [1].

Morgan Stanley has also recently upgraded its outlook on Persimmon Plc. The firm issued an "Overweight" rating with a revised price target of £15.90, up from £15.70. Analyst Peter Ajose-Adeogun cited the company’s focus on affordable homes in the UK as a key factor for the positive rating [1].

This upgrade reflects confidence in Persimmon’s ability to navigate economic pressures and capitalize on favorable market conditions.

References:
[1] https://za.investing.com/news/analyst-ratings/bofa-securities-upgrades-persimmon-stock-rating-to-buy-on-valuation-93CH-3781170