Argus Views on Toll Brothers, Inc. (NYSE: TOL)

Argus assigned a 12-month Hold rating on Toll Brothers, Inc. (NYSE: TOL) as TOLL has increased its cash position significantly and has adjusted to the weak market conditions. Argus has also lowered its loss projection on TOL for FY09 to $4.42 per share, a decrease of $0.01 and for the fourth quarter of 2009 to be $0.42 a share from $0.43 a share. Argus expects Toll Brothers to report a loss of $0.26 a share for FY10.

In the fourth quarter, TOLL announced that it delivered 860 units for revenue of $487 million. However, home building revenue was around $150 million beating Argus estimates. Argus feels that Toll Brother’s five-year earnings would grow at 10%. Argus also maintains a 5-year Buy rating for Toll.

Toll Brother had a strong cash balance of $1.81 billion and $101 million of marketable securities for the fourth quarter of 2009.

Toll Brothers, Inc. (NYSE: TOL) declined 4.92% to $18.54 in the pre-market session. In the previous trading session, TOLL closed at $19.50. The 52-week trading range for TOL is $13.72 - $24.30. So far in 2009, TOL declined by around 9%.