Toll Bros. (TOL) Margins Seen Flat, Compass Point Cuts Price Target
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Price: $36.92 +2.19%
Rating Summary:
10 Buy, 11 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
10 Buy, 11 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade TOL Now!
In the wake of the homebuilder's Q4 earnings report, Compass Point maintained a Neutral rating on Toll Bros. (NYSE: TOL) and cut its price target to $30.00 (from $35.50).
Toll guided to 3,600 to 4,400 closing in Q4, which was lower than some expectations. In a conference call, management guided 2013 margins in line with 2012 levels, disappointing analysts.
"We would become more bullish on TOL if the company's 1Q12 margin was materially higher than 20.0%, which would suggest low-ball guidance from management," said analyst Wilkes Graham.
"We also note that while TOL's buyers should be less affected by tax changes related to the ongoing Fiscal Cliff negotiations than lower-income buyers, should tax changes and/or deduction eliminations such as the mortgage interest deduction be limited to upper-income buyers only, TOL's buyers could be negatively pressured relative to buyers of nearly all other home builders," warned Grahmam.
For an analyst ratings summary and ratings history on Toll Bros. click here. For more ratings news on Toll Bros. click here.
Shares of Toll Bros. closed at $31.86 yesterday, with a 52 week range of $18.95-$37.08.
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Toll guided to 3,600 to 4,400 closing in Q4, which was lower than some expectations. In a conference call, management guided 2013 margins in line with 2012 levels, disappointing analysts.
"We would become more bullish on TOL if the company's 1Q12 margin was materially higher than 20.0%, which would suggest low-ball guidance from management," said analyst Wilkes Graham.
"We also note that while TOL's buyers should be less affected by tax changes related to the ongoing Fiscal Cliff negotiations than lower-income buyers, should tax changes and/or deduction eliminations such as the mortgage interest deduction be limited to upper-income buyers only, TOL's buyers could be negatively pressured relative to buyers of nearly all other home builders," warned Grahmam.
For an analyst ratings summary and ratings history on Toll Bros. click here. For more ratings news on Toll Bros. click here.
Shares of Toll Bros. closed at $31.86 yesterday, with a 52 week range of $18.95-$37.08.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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