Persimmon initiated with a Sector Perform at RBC Capital

RBC Capital initiated coverage of Persimmon with a Sector Perform rating and 1,300 GBp price target as the firm rolled out coverage of the U.K. housebuilding sector. The firm, which has its own proprietary housing market data, looks at a range of valuation metrics, but “we keep coming back to ‘price to book'” as the best way to value homebuilders, arguing that “a housebuilder is nothing without land and their landbanks typically have a balance sheet value close to their overall tangible net asset (book) value.”