Toll Brothers, the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst John Lovallo from UBS reiterated a Buy rating on the stock and has a $181.00 price target.
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John Lovallo has given his Buy rating due to a combination of factors that highlight Toll Brothers’ strong performance and potential for growth. Despite slightly lowering the price target from $183 to $181, Lovallo maintains confidence in the company’s valuation, emphasizing that 2026 is expected to be a more favorable year for the housing market. The company’s consistent track record of exceeding delivery and gross margin expectations in recent quarters supports this optimistic outlook.
Additionally, Toll Brothers’ financial guidance for FY26, including expected deliveries and average selling prices, aligns with UBS’s revised estimates, reinforcing the Buy rating. The company’s core homebuilding metrics have shown resilience, with home sales revenue and adjusted gross margins outperforming expectations. Although there was a temporary EPS impact due to the timing of an asset sale, the underlying business fundamentals remain robust, justifying the continued positive recommendation.
Based on the recent corporate insider activity of 48 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of TOL in relation to earlier this year.