Investing.com -- Shares in Persimmon (LON:PSN) surged on Thursday after it reported better-than-expected first-half results and reaffirmed its positive outlook for the year.
At 6:52 am (1052 GMT), Persimmon was trading 2.8% higher at £1,521.1.
As per analysts at RBC Capital Markets, the UK housebuilder delivered a robust set of first-half results, with new home completions exceeding the previous year and a strong increase in private sales.
The company's average selling price also rose, contributing to higher revenue and profitability.
UBS Global Research said Persimmon's pre-tax profit for the first half of the year jumped 12% compared to analyst expectations. The company also increased its full-year housing completion guidance to the top end of its previous range.
Driving the strong performance was a combination of factors, including increased house prices, higher sales volumes, and improved consumer confidence. Persimmon's management highlighted a notable pick-up in enquiries and visitor levels, with private sales rates surging 68% year-on-year since July 1st.
The upbeat outlook for the remainder of the year, coupled with the company's ambitious plans to expand its outlet network, further boosted investor sentiment. While acknowledging the challenges posed by government supply-side reforms, Persimmon remains optimistic about its growth prospects.
RBC Capital Markets maintained its "Sector Perform" rating on Persimmon shares but noted the company's strong position in the housing market and the positive outlook for the sector.
UBS Global Research maintained its "Neutral" rating on Persimmon shares but raised its price target, reflecting the company's strong performance and positive outlook.