Persimmon Shares: UBS Bullish, But Stock Slips

Persimmon (LON: PSN) shares slipped Wednesday even after UBS began coverage of the homebuilder with a bullish rating.

UBS initiated the stock at buy with a 1,325-pence price target, though it took a selective stance on the UK housebuilding sector.

The bank said a near-term, sector-wide re-rating looks unlikely given a challenging macro backdrop and negative investor sentiment, and that it prefers volume builders with “good recovery potential.”

Despite the new rating, Persimmon shares fell 1.2%. The stock has struggled this year, down more than 17% so far in 2026, though it has recovered around 7.8% over the past three months.

The UBS call is the latest in a mixed run of broker views.

In August, Deutsche Bank upgraded Persimmon to buy from hold, saying the company was “actively managing market headwinds” after what it described as “robust” first-half results, though it trimmed its price target to 1,403 pence from 1,419 pence.

Others have grown more cautious on valuation and the wider market. In June, Citi, JPMorgan and Morgan Stanley all cut their price targets on the FTSE 100 firm while keeping constructive ratings, while Berenberg lowered its target to 1,150 pence and maintained a hold.

Persimmon, one of Britain’s largest housebuilders, has been weighed down by weaker buyer affordability, higher mortgage rates and softer sentiment across the sector.