More Good News11 Jan 2011 14:25
After a great trading update by housebuilder Persimmon, Panmure Gordon ups its 2010 forecasts, while leaving 2011 estimates where they are, as the short-term market outlook remains uncertain.
The group reported a robust update with pre-tax profits expected to be at the top of the £75m-96m range. The broker raises profit forecasts from £80.3m to £95m as a result.
With sales, pricing and margins being broadly in line with broker expectations, Panmure said that Persimmon’s area of outperformance is the debt, with the group ending the year with £51m of debt compared to the £78m it forecast.
Though the housing market does not show any signs of improving over the next 12 months, the broker says that the housebuilder’s numbers appear to have remained broadly stable, and rates the group a ‘buy’, with a target price of 487p.