Persimmon results: optimism over housing |
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| Economy | |
| Written by Gary Howes | |
| Tuesday, 25 August 2009 | |
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UKs largest housebuilder indicates better market conditions.
Analysts have reacted positively to housebuilder Persimmon (LON:PSN) who has today released their latest trading update. The results from Persimmon appears to have already been factored into the market as today's rise of 0.77% has been outdone by yesterday's increases. Keith Bowman, Equity Analyst at Hargreaves Lansdown Stockbrokers commented: "Persimmon is adding an extra dose of optimism to its July trading update, management is confident that the book on land value write-downs has been closed - with a small write-up from a position last year being made - while the group's focus on generating cash continues to erode debt." However Hargreaves Lansdown do also point to the need for some caution as a combination of uncertain employment prospects and still constrained mortgage availability need to be overcome. "In addition, the shadow of still increasing government debt continues to overhang, with all the uncertainties for tax levels and employment prospects in the public sector which this raises. "Nonetheless, these are positive results, although a 75pc gain in the share price over the last 6 months could provide a profit-taking opportunity. On balance, market consensus opinion remains cautiously positive in tone," says Bowman.
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