Toll Brothers price target lowered to $145 from $165 at Raymond James

Raymond James lowered the firm’s price target on Toll Brothers (TOL) to $145 from $165 and keeps a Strong Buy rating on the shares. The firm acknowledges Toll’s first earnings miss in nearly five years, as well as its description of a lackluster start to spring selling, but thinks the quality and resiliency of Toll’s operating model was validated by its 13% year over year order growth and management’s confident reiteration of full-year gross margin targets, the analyst tells investors in a research note. The firm thinks shares remain very attractive even with lowered assumptions, and sees a very achievable path to double-digit EPS growth in 2026 even if mortgage rates remain stuck at current levels.