Toll Brothers price target raised to $150 from $143 at RBC Capital

RBC Capital raised the firm’s price target on Toll Brothers (TOL) to $150 from $143 and keeps an Outperform rating on the shares after its Q4 earnings beat. The firm is also raising its FY25 EPS view by 10c to $14.16 to reflect stronger deliveries and average selling prices, more than offsetting weaker margins, the analyst tells investors in a research note. The management had cited sales mix as the main driver of the weak Q1 gross margin guide, though RBC believes that investor skepticism may linger, the firm states. Near-term demand has trended better vs. seasonality, but RBC remains cautious on the demand and incentive outlook more broadly.