Credit Suisse Upgrades Toll Brothers, Boosts Price Target To $42
Michael Dahl, an analyst at Credit Suisse, has upgraded Toll Brothers Inc (NYSE: TOL) from Neutral to Outperform on Thursday morning. The company closed at $36.81 after Wednesday’s market session and rose 67 cents to $37.48 on Thursday morning.
In particular, Dahl envisions a compelling upside scenario next year. He has raised his price target from $40 to $42, and commented that the street under-appreciates 2016 EPS potential.
“We expect City Living revenues to rise by approximately 150 percent in 2016 to $573 million, from $227 million in 2015.” Dahl adds that Toll can benefit from rising interest rates, given its affluent customer base.
California, he explained, has shown “meaningful improvement in California demand and pricing trends.” He states that Toll’s exposure is concentrated in San Francisco, the second largest builder by local market share and Los Angeles, the sixth largest.
Toll Brothers shares have increased nearly 4 percent in the previous five days and are up 10 percent year-to-date.
Latest Ratings for TOL
|Sep 2016||Wells Fargo||Initiates Coverage on||Outperform|
|Aug 2016||Keefe Bruyette & Woods||Maintains||Market Perform|
|Aug 2016||Buckingham Research||Maintains||Buy|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.