Update shared on 13 Nov 2025
Fair value Decreased 1.99%Persimmon's analyst price target was reduced from £14.50 to £13.00, as analysts cite a softer outlook on profit margins and discount rate adjustments, despite stable revenue growth projections.
Analyst Commentary
Recent analyst updates reflect a cautious but balanced outlook for Persimmon, with valuation adjustments reflecting both stable growth expectations and concerns about profitability.
Bullish Takeaways- Bullish analysts recognize Persimmon's steady revenue growth projections, which continue to support the company’s long-term outlook.
- Despite margin headwinds, the price target reflects confidence that Persimmon will maintain its market share in a competitive sector.
- Positive industry fundamentals, such as underlying housing demand, are expected to support operational stability and mitigate major downside risks.
- Bearish analysts are increasingly concerned about softer profit margins, with rising build costs and pricing pressure potentially affecting future earnings.
- Recent price target reductions reflect adjustments for discount rates, suggesting increased risk perceptions related to higher interest rates and macro uncertainty.
- While revenue forecasts remain steady, there is caution around the company’s ability to convert top-line growth into bottom-line improvement in the near term.
Valuation Changes
- The Fair Value Estimate has decreased modestly to £14.62 from a previous £14.92.
- The Discount Rate has risen slightly and is now at 8.64 percent compared to 8.28 percent previously.
- The Revenue Growth Projection has increased slightly, reaching 7.12 percent from 7.05 percent.
- The Net Profit Margin expectation has edged down to 10.93 percent from 10.99 percent.
- The Future P/E Ratio has dipped marginally to 13.19x from 13.26x.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.