Canopy Growth stock tumbles after announcing $200 million share sale plan
Investing.com - Keefe, Bruyette & Woods raised its price target on Toll Brothers (NYSE:TOL) to $145.00 from $143.00 on Thursday, while maintaining a Market Perform rating on the luxury homebuilder’s stock.
KBW analyst Jade Rahmani reduced fourth-quarter 2025 earnings per share estimates by 6% based on 4% lower expected deliveries and a 0.4% decrease in gross margin forecasts. The firm’s 2026 estimates remained largely unchanged, projecting 9% orders growth and flat deliveries. InvestingPro data shows the company maintains strong profitability with a 26.3% gross margin and has been actively buying back shares, demonstrating management’s confidence in the business.
The research note indicated that Toll Brothers management described the current housing market as challenging, though the company observed improved traffic in August, albeit with conversion rates remaining below normal levels.
KBW highlighted that Toll Brothers shares currently trade at 1.7 times current book value and 1.5 times forward book value, representing a valuation approximately 15% below large-cap peers in the homebuilding sector.
Despite acknowledging that Toll Brothers is well-positioned compared to entry-level builders, KBW maintained its neutral Market Perform rating, citing the uncertain housing environment as the primary reason for not taking a more bullish stance.
In other recent news, Toll Brothers has been the focus of several analyst updates. UBS reiterated its Buy rating on Toll Brothers with a price target of $183, citing a positive outlook for 2026 despite some concerns about the company’s fourth-quarter guidance. Goldman Sachs maintained its Neutral rating with a $135 price target, highlighting the uncertainty in Toll Brothers’ operating conditions as seen in the third-quarter results and fourth-quarter guidance. RBC Capital raised its price target to $145 from $133, maintaining an Outperform rating, while adjusting its earnings per share estimates for fiscal years 2025 and 2026. Wells Fargo also increased its price target to $160 from $150, keeping an Overweight rating, following a fiscal third-quarter earnings call that they found positive. The firm noted improved performance in June and July compared to May. These developments indicate a range of perspectives on Toll Brothers’ future, with varying price targets and ratings reflecting different expectations.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.