Deutsche Bank Reiterates Hold on Toll Brothers

Deutsche Bank maintains its Hold rating on Toll Brothers (NYSE: TOL) as pre-announced EPS beat caused no surprise.

Deutsche notes, "EPS $0.43 TO $0.38. With volumes and revenues having been pre-announced positively in early November, Toll's full 4Q results left little to surprise. The company's margins outperformed while impairments and JV income were largely in line with expectations. Positive 4Q volume trends appear to have continued into 1Q12 with a 20% y/y increase in November. While the company seems to have momentum going into 2012, further gains in profitability will be driven by better pricing power, which is not likely on the horizon at this stage in recovery."

TOL closed at $19.66 per share on Friday.