Toro Company downgraded to Market Perform from Outperform at Raymond James

Raymond James downgraded Toro Company (TTC) to Market Perform from Outperform without a price target The firm cites valuation for the downgrade with the shares up over 40% since December 9. Toro’s valuation has returned to its 10-year median of 14-times forward EBITDA, with an expected forward free cash flow yield “now a more reasonable” 5%, the analyst tells investors in a research note. Raymond James views 2026 as a “fairly normal year” for Toro with single-digit earnings growth as backlogs have been worked lower, channel inventories have normalized, and homeowner activity remains “muted.”