DA Davidson upgrades Toro stock rating to Buy on strong spring sales data

Published 25/08/2025, 12:58
DA Davidson upgrades Toro stock rating to Buy on strong spring sales data

Investing.com - DA Davidson upgraded Toro (NYSE:TTC) from Neutral to Buy and set a price target of $93.00 on Monday. The $7.8 billion lawn care equipment manufacturer, currently trading at a P/E of 20.2, is showing signs of undervaluation according to InvestingPro analysis.

The upgrade follows several positive data points that have emerged in recent weeks, including strong late-spring sales according to dealer same-store-sales data. The company maintains a strong financial position with a "GOOD" health score and has increased its dividend for 21 consecutive years.

DA Davidson’s golf course survey suggests a promising 2025 season for Toro, while retail read-throughs indicate positive trends in the company’s Residential segment.

The firm also noted that Friday’s Federal Reserve comments regarding potential interest-rate reductions could boost both consumer and professional confidence in the market.

DA Davidson expects Toro’s upcoming earnings call next week to reflect a more positive outlook based on these improving market conditions.

In other recent news, The Toro Company has announced several significant developments. The company reported its fiscal second-quarter 2025 earnings, surpassing earnings per share expectations and executing $200 million in share buybacks year-to-date. Despite these positive financial results, Toro has reduced its full-year guidance, citing weakening residential demand and tariffs as contributing factors. Following this, Northland analysts downgraded Toro’s stock from Outperform to Market Perform and lowered the price target from $100 to $80. Additionally, DA Davidson adjusted its price target for Toro to $76 from $80, maintaining a Neutral rating on the stock.

In corporate news, Toro has named Edric C. Funk as the new president and chief operating officer, effective September 1, 2025. Funk will oversee all global businesses and integrated supply chain operations. On the business front, Toro has divested its Trencor equipment brand and the auger boring product category from its American Augers brand. While the financial terms of these transactions were not disclosed, the company will continue manufacturing other American Augers’ products. These recent developments highlight ongoing strategic adjustments within Toro as it navigates market challenges and opportunities.

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