Stifel Nicolaus Reiterates Hold on Toll Brothers
Stifel Nicolaus maintains its Hold rating on Toll Brothers, Inc. (NYSE: TOL) as the stock had difficulty keeping above $22 for very long, despite solid results and decent guidance.
Stifel says, “Toll announced 4QFY11 EPS of $0.09 (vs. our 6c and 5c consensus). Toll announced preliminary results a month ago (revenues and orders) leaving the substantive unknowns as gross margins, SG&A costs, and impairments. Summary take: solid quarter given the tough backdrop. While we think Toll is well positioned amongst the homebuilders we see the sector outlook as still challenging and the stock within spitting distance of multi-year highs. We see the sharp sector rally off the bottom reflecting a sentiment turn and seasonal trade much more than fundamental improvement in housing.”
TOL closed at $21.30 per share on Tuesday.
