Persimmon initiated with an Underweight at Barclays (yesterday)

Barclays analyst Emily Biddulph initiated coverage of Persimmon with an Underweight rating and 1,360 GBp price target. The analyst yesterday initiated coverage on the U.K. housebuilders and merchants with a Neutral view, seeing an "increasingly tough" near-term outlook. Biddulph expects meaningful house price declines by 2024 and weaker home improvement markets. However, double-digit price declines are already priced in and balance sheet strength "means it really is different this time," Biddulph told investors in a research note. Barratt, Redrow, Taylor Wimpey and Berkeley are her favored housebuilders.