UPDATE: Topeka Capital Markets Initiates Toll Brothers at Hold on Valuation

Topeka Capital Markets initiated coverage on Toll Brothers

with a Hold rating and a $33 price target. Topeka Capital Markets noted, "Demand for Toll-branded homes appears to be increasing across the US, and we believe the traditional Toll buyer may be less sensitive to a loss of the mortgage interest tax deduction than entry-level or first-move-up buyers. However, we believe Toll's greater-than-$500k average selling price may result in headline risk as the fiscal cliff negotiations continue." Toll Brothers closed at $30.67 on Thursday.