Wedbush upgrades Toll Brothers on selloff, move up demand

Wedbush upgraded Toll Brothers (TOL) to Outperform from Neutral with a price target of $175, up from $148. The firm believes the recent pullback in the shares due to rising mortgage rates has created a buying opportunity. The average Toll buyer is less concerned with their monthly payment versus the bulk of the builder sector, the analyst tells investors in a research note. The stock market reaching all time highs in recent days could be a tailwind for the company’s demand, contends Wedbush. It believes the lack of existing homes in most markets are pushing must move buyers into new homes which should benefit Toll Brothers and the move up builders.