Toll Brothers downgraded to Neutral from Buy at Seaport Research

Seaport Research analyst Kenneth Zener downgraded Toll Brothers (TOL) to Neutral from Buy without a price target The firm downgraded all builders it covers citing “rising concern that housing activity is poised to slow further.” Seaport sees the group going from from “value-trap” to “catching a falling knife.” The weak job market growth undermines a prior assumption that demand is stabilizing, the analyst tells investors in a research note. The firm expects further multiple compression until housing starts approach trough levels, consistent with past cycles.