Update shared on 28 Nov 2025
Fair value Increased 0.059%Analysts have modestly increased their fair value estimate for Persimmon to $14.63, citing improved revenue growth projections and ongoing margin stability based on recent industry research.
Analyst Commentary
Recent analyst coverage highlights both optimistic and cautious perspectives regarding Persimmon's future performance. The consensus reveals a mix of factors under consideration as analysts assess Persimmon's valuation and growth prospects.
Bullish Takeaways
- Bullish analysts point to ongoing strong bookings and successful execution of a technology-focused acquisition strategy as a key driver of future growth opportunities for Persimmon.
- Revenue growth projections remain robust, with particular optimism for acceleration in federal contract activity. This could support sustained top-line expansion.
- Margin expansion is noted across multiple segments. This supports a premium valuation compared to industry peers and reinforces long-term profitability expectations.
- Analysts have observed management's increasing confidence in securing significant contract wins. This could further enhance Persimmon's order backlog and execution momentum.
Bearish Takeaways
- Bullish sentiment is tempered by concerns regarding near-term revenue shortfalls relative to initial estimates in recent quarters.
- Some analysts note that while margins remain strong, the pace of new award acceleration in certain government segments has yet to meet expectations. This suggests a more gradual growth trajectory.
- There is ongoing uncertainty related to the timing and outcome of large-scale contract decisions, which may impact the company's valuation if there are delays or unfavorable developments.
Valuation Changes
- Fair Value Estimate has risen slightly, moving from £14.62 to £14.63 per share.
- Discount Rate has increased modestly from 8.64% to 8.66%.
- Revenue Growth projection has risen slightly, from 7.12% to 7.30%.
- Net Profit Margin has edged down, moving from 10.93% to 10.85%.
- Future P/E Ratio has increased marginally, from 13.19x to 13.23x.
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.