UK homebuilders Persimmon, Vistry dive as brokerage cuts rating

Parsons

02/12/2024 08:38

** Persimmon  PSN.L  down 2.3% at 1,228.5p, Vistry  VTYV.L 
down 2.5% at 639.5p
    ** Both stocks top pct losers on FTSE 100  .FTSE  index; PSN
hits lowest since Nov 2023
    ** RBC cuts both British homebuilders' stocks to
"underperform" from "perform"
    ** RBC says Persimmon's Q3 commentary on build costs and
building regulation planning changes suggested risks to FY
embedded margins
    ** Says Vistry has had two profit warnings in two months and
while provisions and cost calculations remain unaudited, there
are downside risks
    ** Brokerage cuts target price for PSN to 1,275p from
1,475p, VTYV to 500p from 825p 
    ** Morgan Stanley cuts PSN's TP to 1,600p from 1,721p 
    ** Elsewhere, UK house prices in Nov rose at fastest annual
pace in over two year 
    ** PSN down ~12% so far this year, VTYV down ~30% 


 (Reporting by Prerna Bedi in Bengaluru)
 ((Prerna.Bedi@thomsonreuters.com; +91 98052 24616;))