Davy Morning Equity Briefing
Nov 12, 2026
Persimmon plc
Standout sales rate; FY26 guidance held
Persimmon reported a strong set of results with its open market net private reservation rate at 0.65 per outlet per week, up 3% year-on-year (yoy). In what have been difficult open market conditions, this is a resilient result and a standout in the sector. FY26 guidance for underlying profit before tax was held at £456m. Completions growth is expected for FY27. On an underlying profit basis however, the drop through will be moderated by build cost inflation. This strong set of results reinforces our positive view of Persimmon. It remains our top pick in the sector.
Wizz Air Holdings
Q2 RASK beat; growing pains remain for winter
Wizz Air has reported a Q2 net profit of €306.5m, up 7% year-on-year (yoy), ahead of both Davy and consensus estimates. The Q2 outperformance was largely driven by better-than-expected RASK (+0.5%) due to stronger close-in bookings and stable load factors on the back of capacity growth (ASKs) of 19% yoy. Q3 RASK is guided up low-single digits, while load factors are guided down low-single digits on capacity growth (ASKs) of 12%. Mid-single digit ex-fuel CASK inflation is expected in H2, while CEO depreciation steps up along with a headwind from lower SLBs and compensation. With load factors down and a step up in ex-fuel costs coupled with fuel up c.20%, we expect the Q2 beat to largely be offset by H2 headwinds. For full year 2027, we forecast a loss of €478.6m (Visible Alpha (VA) consensus loss €487.7m; FactSet €383m). Liquidity remains robust with c.€2.4bn cash on hand at quarter end.
UK economy
The ‘Burnham Bounce’ continued in September
The UK economy remained resilient into September. The first estimate of gross domestic product (GDP) growth for Q3 is more than twice the forecast by the Office for Budget Responsibility in last month’s Budget. There is quite a broad-based appearance to the results this year, with business investment remaining solid as the Budget approached. If, as we expect, inflation undershoots hawkish new forecasts by the Bank of England published last week, we see scope for Bank Rate cuts as 2027 progresses.
