Jefferies Picks Persimmon Top UK Housebuilder

Jefferies names Persimmon its top UK housebuilder pick, keeping a “buy” rating despite cutting its price target to 1,591p from 1,792p.
Jefferies also cut targets for Barratt Redrow, Bellway, Crest Nicholson and Taylor Wimpey, while keeping Berkeley at 4,598p; only Barratt is a hold.
Jefferies cut 2027‑28 housebuilder growth to 2‑5% and 3‑4%, assumes 4‑5% build‑cost inflation, no house‑price rise, and EBIT margins down 0‑1.5% in 2027.
Jefferies says stocks trade at P/E multiples, up to 60% discount to net tangible asset value, with ROCE 5.9‑13.7% and P/NTAV 0.38‑0.90x.