BTIG analyst Carl Reichardt has maintained their neutral stance on TOL stock, giving a Hold rating today.
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Carl Reichardt has given his Hold rating due to a combination of factors impacting Toll Brothers’ recent performance. The company’s first-quarter earnings per share fell short of expectations, largely due to impairments and a postponed apartment building sale. Lower unit deliveries, a decrease in average selling price, and higher selling, general, and administrative expenses also contributed to the earnings miss, although these were somewhat offset by better-than-expected margins and a reduced tax rate.
Carl notes that while Toll Brothers is experiencing healthy demand in the high-end market, challenges remain in terms of affordability at the lower end, with some markets facing elevated inventory levels. Despite the earnings shortfall, Toll Brothers has maintained its full-year guidance, though its second-quarter outlook is slightly weaker than initially predicted. These mixed results have led to a cautious approach, justifying the Hold rating as the company navigates these varying market conditions.
In another report released today, KBW also maintained a Hold rating on the stock with a $164.00 price target.