Persimmon PLC
PSN: XLON (GBR)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
GBX 2,388.00 | Hhn | Slqryrftz |
Persimmon Shares Appeal Despite Market’s Distaste for Its New, Flexible Capital Allocation Policy
The equity market’s initial take on Persimmon’s newly minted capital allocation policy—announced in conjunction with its November 2022 trading update—is unnecessarily grim in our view, with Persimmon shares declining by as much as 8% in early trade. The negative share price reaction is partly explained by freshly announced provisions for legacy building safety remediation costs that lead us to lower our fair value estimate by 2.5% to GBX 2,340.