Toll Brothers price target raised to $70 from $68 at BofA

BofA analyst Rafe Jadrosich raised the firm’s price target on Toll Brothers to $70 from $68 and keeps a Buy rating on the shares after the company reported fiscal Q1 EPS well ahead of the firm’s and consensus estimates. Orders were better than expected and demand has improved sharply year-to-date and although the firm cautions that near-term trends are susceptible to mortgage rate fluctuations, it said it now has greater conviction that Toll will likely continue to grow its book value and maintain return-on-equity well above its cost of capital.