Market Overview

UPDATE: ISI Group Upgrades Toll Brothers to Buy, Assigns $38.50 PT

Related TOL
JP Morgan Still Likes Housing
Morgan Stanley's American Tower Valuation, Rexford Industrial's Latest Buy & Other REIT Movers
When Rate Hikes Come, They Will Ripple Across U.S. Economy (Fox Business)

In a report published Monday, ISI Group upgraded its rating on Toll Brothers (NYSE: TOL) from Hold to Buy and assigned a $38.50 price target.

ISI Group noted, “In conjunction with ISI Group's adoption of a changed ratings system, we are assigning an upgraded Buy rating to TOL, with a Price Target of $38.50, implying roughly 15% upside over the next year, while our new Buy rating in the system targets 10% to 20% appreciation. Our prior rating was Hold. Over the past year, we've struggled with this equity's high valuation and strong performance, given its rather mundane operating performance the first half of the year. However, over the last quarter plus, the equity has done very little while the group significantly outperformed. Combining that dynamic with a step-change fundamental performance, gives us the opportunity to be more aggressive on the equity. The equity trades at a discount to the group on some metrics, while others are basically on par with the group. We believe TOL's strong order growth, rapidly rebounding margins and its unique position allowing for continued market share gains, argues very easily for a 10% to 15% premium to the group.”

Toll Brothers closed on Friday at $33.66.

Latest Ratings for TOL

DateFirmActionFromTo
Sep 2014Credit SuisseMaintainsNeutral
Sep 2014BarclaysMaintainsEqual-weight
Sep 2014JP MorganMaintainsUnderweight

View More Analyst Ratings for TOL
View the Latest Analyst Ratings

Posted-In: ISI GroupAnalyst Color Upgrades Analyst Ratings

 

Related Articles (TOL)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters