Bank of America has lowered its price target for Persimmon Plc to 1,220p from 1,300p, citing expectations of increased construction costs that are likely to impact the housebuilder's profitability in 2027. Despite the target reduction, the bank maintained its 'buy' rating on the stock.
The analysts have adjusted their earnings estimates for Persimmon for the years 2026 to 2028 downwards by an average of about 7%. They now project a decline in the company's underlying operating margin in 2027 before a recovery in 2028. However, Bank of America also noted that Persimmon is unique among its listed peers in showing growth across all key operating metrics.