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Investing.com - UBS has reiterated its Buy rating and $183.00 price target on Toll Brothers (NYSE:TOL), maintaining its positive stance on the luxury homebuilder despite some concerns about its fourth-quarter outlook. The stock, currently trading at $134.95, maintains a conservative P/E ratio of 10 and boasts a "GREAT" financial health score according to InvestingPro analysis.
The investment firm noted that while some investors might focus on Toll Brothers’ slightly softer fiscal fourth-quarter guidance, UBS continues to view the setup for the company and homebuilders generally heading into calendar year 2026 as positive. InvestingPro data reveals management has been aggressively buying back shares, and the company has maintained dividend payments for 9 consecutive years, demonstrating strong financial discipline.
UBS cited several factors supporting its optimistic outlook, including disciplined production across the homebuilding sector, stabilizing consumer confidence, and the potential for reduced interest rate volatility in the coming year.
The firm expressed increasing conviction that homebuilders have reached or are approaching the end of the negative earnings revision cycle, which it believes should serve as a solid catalyst for the sector.
UBS maintained its $183.00 price target on Toll Brothers stock, reflecting its continued confidence in the luxury homebuilder’s prospects despite near-term headwinds in the housing market.
In other recent news, Toll Brothers Inc. reported strong financial results for the third quarter of 2025. The company exceeded analysts’ expectations with earnings per share of $3.73, higher than the projected $3.60. Toll Brothers also reported revenue of $2.9 billion, surpassing the anticipated $2.86 billion. These results highlight the company’s robust performance during the period. Investors have shown confidence in Toll Brothers’ recent achievements. The company’s performance has been positively received in the market. Analysts’ expectations were surpassed, reflecting well on the company’s strategic execution.
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