UPDATE: Stifel Nicolaus Downgrades Toll Brothers to Sell

Stifel Nicolaus lowers its rating on Toll Brothers

from Hold to Sell based on stretched valuation. Stifel says, “TOL has recently traded just below multi-year highs and in our view has priced in a faster housing recovery than we realistically envision. We struggle to find any near term catalyst to propel the stock to new multi-year highs and believe that the seasonal pattern of buying (trading) homebuilders ahead of a potential turn in the spring came a bit early this year. We see limited valuation upside remaining and material downside risk should recent housing optimism fade.” TOL closed at $19.69 per share on Tuesday.