TOL stock popped Thursday amid a slew of analyst upgrades after Toll Brothers delivered strong earnings and guidance late Tuesday.
Bank of America analyst Rafe Jadrosich raised his price target on the luxury-home builder to $76 from $70 and kept a buy rating on shares. Gross margins on new orders appear to be higher than margins on homes in backlog due to the recent price increases and incentive reductions, the analyst said in a note to clients.
Analysts at Credit Suisse also hiked their TOL target to $73 from $63. At Zelman, analysts upgraded shares to buy from hold. RBC Capital Markets upgraded Toll Brothers stock to outperform from sector perform.
Zelman cited the company's "excellent results" and "muted stock reaction" Wednesday.
RBC noted demand improvement and resilient margins, among other factors. The firm said Toll Brothers' high-end, West Coast exposure continued to be a strength. RBC expects "outsize order growth" through the first quarter of 2024.
Late Tuesday, Toll Brothers, the largest U.S. luxury-home builder, delivered a 54% earnings jump, smashing estimates. Toll Brothers also raised its home delivery target to 8,900-9,500 units for the full year.
The luxury new-home builder says it targets America's most sought-after locations.
TOL Stock Jumps
Shares of Toll Brothers popped 4.7% to 68.13 on the stock market today.
TOL stock cleared a 65.62 buy point from a three-weeks-tight pattern in May, the MarketSmith chart shows.
The homebuilder is still in buy range from that follow-on entry. It is far extended from an earlier breakout past a 57.86 cup-with-handle buy point.
