JP Morgan Raises PT on Toll Brothers to $24.50
JP Morgan has published a research report on Toll Brothers (NYSE: TOL) and has raised the price target from $22 to $24.50.
In the report, JP Morgan writes, "Following TOL's 4Q (Oct-end) earnings conference call, we provide the following key takeaways. Orders through December 4th have risen 20%, while incentives remain lower. Additionally, TOL's gross margins, while expected to be modestly lower for most of FY12 in part due to purchase accounting from the CamWest acquisition, should remain strong and industry leading. The company also reiterated its commitment to Gibraltar, as it increased its investment; however, Gibraltar should remain a relatively low contributor to earnings. From a regional perspective, the Washington D.C.- Boston corridor remains very strong, while FL continues to be soft and CA is “hit or miss”. Lastly, the jumbo mortgage market has improved over the last six to eight weeks."
JP Morgan maintains its Overweight rating on Toll Brothers, which is currently trading down $0.30 from yesterday's $21.30 closing price.
