JP Morgan Reiterates Overweight, $22 Target on Toll Brothers

JP Morgan maintains its Overweight rating and $22 target price on Toll Brothers, Inc. TOL as company reports 4Q EPS slightly above street. JPM comments, “These results featured EPS of $0.09, roughly in-line with our $0.08E and slightly above the Street's $0.06. TOL's EPS was driven by gross margins (ex-charges, legal accrual reversal and interest) of 23.7%, modestly above our 23.2%E, and operating margins of 7.7%, above our 6.5%E, while land-related charges of $18 million (0.4% of equity after-tax) were above our $8 million estimate (0.2% of equity a fter-tax). Lastly, the company issued FY12 closings guidance of 2,400-3,200 and ASP guidance of $550K-$575K, whose midpoints are roughly in-line with our 2,900 and $565K estimates, respectively.” TOL closed at $20.74 per share on Monday.