Persimmon PLC

PSN: XLON (GBR)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	GBX 5,372.00	Jztv	Cbkqjkpf

Persimmon Shares Appeal Despite Market’s Distaste for Its New, Flexible Capital Allocation Policy

Grant Slade

Nov 8, 2022

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.

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