U.S. stock futures slip lower; Cook’s firing increases Fed independence worries
Investing.com - Wells Fargo (NYSE:WFC) raised its price target on Toll Brothers (NYSE:TOL) to $160.00 from $150.00 on Thursday, while maintaining an Overweight rating on the luxury homebuilder’s stock. According to InvestingPro analysis, the company currently trades at an attractive P/E ratio of 9.75x and maintains excellent financial health with a current ratio of 4.26.
The price target adjustment follows Toll Brothers’ fiscal third-quarter earnings call, which Wells Fargo viewed positively despite mixed investor reactions. The firm cited several factors supporting its optimistic outlook, including improved performance in June and July compared to May. This aligns with InvestingPro data showing strong returns over both the last month and quarter, with the company’s shares currently trading below their Fair Value.
Wells Fargo noted that August deposits and foot traffic showed quarter-over-quarter improvements, with foot traffic specifically experiencing double-digit percentage growth. Combined with a 6% quarterly increase in communities, the firm believes Toll Brothers could achieve approximately 2,500 orders in the fiscal fourth quarter.
While incentive loads increased by 1 percentage point to 8% quarter-over-quarter in the fiscal third quarter, Wells Fargo pointed out that these have decreased from their peak levels. The firm also highlighted that build-to-order gross margin percentages are tracking above 30%.
Wells Fargo updated its earnings per share estimates for Toll Brothers to $13.80 for fiscal year 2025 and $13.60 for fiscal year 2026, representing no change and a 45-cent increase, respectively. These projections remain below Street consensus but likely exceed many investors’ expectations, according to the firm. For deeper insights into Toll Brothers’ valuation and growth prospects, including 12 additional ProTips and comprehensive financial analysis, visit InvestingPro to access the full Pro Research Report.
In other recent news, Toll Brothers Inc. reported strong financial results for the third quarter of 2025, exceeding analysts’ expectations. The company achieved earnings per share of $3.73, surpassing the projected $3.60. Additionally, Toll Brothers reported revenue of $2.9 billion, beating the anticipated $2.86 billion. These results indicate robust performance and have garnered positive attention from investors. UBS has reiterated its Buy rating for Toll Brothers, maintaining a price target of $183.00. Despite some concerns about the company’s fourth-quarter outlook, UBS remains optimistic about Toll Brothers’ prospects as it approaches 2026. The investment firm’s continued confidence highlights a positive long-term outlook for the luxury homebuilder. These developments reflect the company’s strong position in the market and its ability to meet and exceed financial expectations.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.