Davy Morning Equity Briefing
Sep 14, 2026
Persimmon plc
Heading north: upgrading to ‘Outperform’
Persimmon will continue to achieve higher underlying house price growth than its peers, largely due to its geographic tilt away from London and towards the North of England and the Midlands. The company also has strong embedded gross margins in its landbank and continues to make strides in modern methods of construction. Despite the outperformance year-to-date, the current valuation remains attractive. We upgrade Persimmon to ‘Outperform’ and raise our price target to 1412p.
IRES REIT
Upgrading forecasts again and revisiting the opportunity
We upgrade our net tangible asset (NTA)/share forecasts by 1-2% each year following the interim results and see the potential for further upside from yield compression. We also refresh our EPS forecasts. We review the divergence in IRES’ valuation metrics and highlight the significant opportunity that now exists.
Greencoat Renewables
H1 results confirmed; focus shifts to future value creation
Greencoat Renewables' (GRP) interim results presentation, published ahead of its 09.00 UK/Ire analyst call, provides additional context on several themes outlined in the July Q2 net asset value (NAV) update. With little new from a financial perspective, the presentation reinforces the key pillars of the equity story: continued execution of the updated capital allocation strategy; value creation at Drogheda Energy Park; and an increasingly supportive European power market backdrop. We highlight five key takeaways below.
Economics weekly
US and UK rates in focus this week
We see a US rate hike this week as increasingly likely and justified by economic fundamentals. There is also a need to underscore institutional independence and credibility in the face of significant political pressure for easier monetary policy. For the UK, no change to Bank Rate is likely this week and we see little need for an increase given the labour market’s weakness.
