Toll Brothers Downgraded by Keefe, Bruyette & Woods to Market Perform (TOL)
Toll Brothers (NYSE:TOL) was downgraded by Keefe, Bruyette & Woods from an “outperform” rating to a “market perform” rating in a research note issued on Wednesday, TheFlyOnTheWall.com reports. They currently have a $42.00 price target on the stock, up from their previous price target of $40.00. Keefe, Bruyette & Woods’ price objective points to a potential upside of 9.80% from the company’s current price.
The analysts wrote, “Core earnings (ex. gains) were modestly below our estimates on gross margin and SG&A. TOL reduced the top end of its 2014 revenue guidance. Management noted weather had impacted some sales. We increase our price target to $42 from $40 on the roll forward of higher book value, but downgrade to Market Perform on valuation. We moderately decrease our forward estimates on deliveries and gross margin.”
Toll Brothers (NYSE:TOL) traded up 1.70% during mid-day trading on Wednesday, hitting $38.90. The stock had a trading volume of 7,112,720 shares. Toll Brothers has a one year low of $29.64 and a one year high of $39.73. The stock has a 50-day moving average of $36.64 and a 200-day moving average of $33.80. The company has a market cap of $6.896 billion and a price-to-earnings ratio of 39.51.
Toll Brothers (NYSE:TOL) last issued its quarterly earnings data on Tuesday, February 25th. The company reported $0.25 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.18 by $0.07. The company had revenue of $643.70 million for the quarter, compared to the consensus estimate of $643.92 million. On average, analysts predict that Toll Brothers will post $1.61 earnings per share for the current fiscal year.
A number of other analysts have also recently weighed in on TOL. Analysts at Ned Davis Research upgraded shares of Toll Brothers from a “sell” rating to a “neutral” rating in a research note on Tuesday, February 18th. Separately, analysts at Barclays downgraded shares of Toll Brothers from an “overweight” rating to an “equal weight” rating in a research note on Monday, January 27th. They now have a $38.00 price target on the stock, up previously from $37.00. One research analyst has rated the stock with a sell rating, eleven have issued a hold rating, five have given a buy rating and one has issued a strong buy rating to the company. Toll Brothers currently has a consensus rating of “Hold” and an average target price of $37.96.
Toll Brothers, Inc designs, builds, markets and arranges financing for single-family detached and attached homes in luxury residential communities.
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