Toll Brothers price target raised to $98 from $95 at BofA

BofA raised the firm’s price target on Toll Brothers to $98 from $95 and keeps a Buy rating on the shares ahead of the company’s fiscal Q4 earnings report due after the market close on Tuesday, December 5. Like other builders this earnings season, BofA expects Toll to beat consensus estimates on higher deliveries and better gross margins and the firm models Q4 EPS of $3.89, versus consensus at $3.71. The firm is positive on gross margin sustainability into next year, especially if rates come down, but it argues Visible Alpha consensus deliveries “look a little too optimistic” and it models FY24 EPS of $11.24, 3% below consensus of $11.64.