Bank of America just raised its EUR/USD forecast
Investing.com - BofA Securities raised its price target on Toll Brothers (NYSE:TOL) to $145 from $132 on Tuesday, August 19, while maintaining a Buy rating on the luxury homebuilder ahead of its fiscal third-quarter earnings report. According to InvestingPro data, the company maintains a "GREAT" financial health score and appears undervalued based on its Fair Value analysis.
The investment bank expects Toll Brothers to report earnings per share of $3.98 for the quarter ended July, above the consensus estimate of $3.61. BofA also forecasts orders of 2,300 homes for the quarter, below the consensus expectation of 2,600.
For the full fiscal year 2025, BofA projects earnings per share of $13.72, slightly below the consensus estimate of $13.97. The firm also raised its 2026 earnings per share forecast by 3% to $13.08, primarily based on stronger order expectations.
BofA increased its price objective multiple to 1.6x from 1.5x to reflect higher sector multiples across homebuilders. The firm noted that Toll Brothers’ valuation remains attractive compared to other builders with similar return on equity profiles.
Toll Brothers is scheduled to release its fiscal third-quarter 2025 results after market close on Tuesday, August 19, followed by a conference call on Wednesday, August 20, at 8:30 a.m. Eastern Time.
In other recent news, Toll Brothers announced the appointment of Gregg Ziegler as the new Chief Financial Officer, effective October 31, 2025. Ziegler, who has been with the company for 23 years, will succeed Marty Connor, who will transition to a senior advisor role for one year. Additionally, Toll Brothers has priced a $500 million public offering of Senior Notes at 5.6%, with settlement expected on June 10, 2025. The proceeds from this offering are intended for general corporate purposes, including potentially repaying existing debt. In another development, S&P Global Ratings upgraded Toll Brothers’ issuer credit rating to ’BBB’, citing the company’s robust credit metrics and ability to maintain debt leverage below 2x. Oppenheimer has reiterated its Outperform rating on Toll Brothers stock, maintaining a price target of $155.00 ahead of the company’s fiscal third-quarter earnings report. The firm expects earnings per share to align with Wall Street consensus forecasts. Lastly, Toll Brothers’ stock saw a 2.4% increase following a broader rally in homebuilder stocks, which was driven by weaker-than-expected jobs data and subsequent expectations of Federal Reserve interest rate cuts.
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