Ticonderoga Maintains a 'Neutral' on Toll Bros. (TOL); EPS First Look - Mixed Results Again; Orders Strong, Costs Intractable
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Price: $148.27 -0.7%
Rating Summary:
22 Buy, 11 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
22 Buy, 11 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Ticonderoga maintains a 'Neutral' on Toll Bros. (NYSE: TOL).
Ticonderoga analyst says, "In what is becoming a recurring theme, TOL picked up solid Order growth offset by a "stuck in Neutral" cost profile and persistent impairment charges. The slow bleed on the income statement and its effect on book value is something that likely gets rationalized by the Street, thanks to the consistently improving Order rates. However, we believe the current valuation is generous given the lack of legitimate, consistent, profit potential at the operating level. Orders improvement is a big step toward earnings normality, but until stubborn SG&A and pedestrian gross margins change, we believe investors cannot get amply rewarded by the equity."
For more ratings news on Toll Bros. click here and for the rating history of Toll Bros. click here.
Shares of Toll Bros. closed at $20.27 yesterday.
Ticonderoga analyst says, "In what is becoming a recurring theme, TOL picked up solid Order growth offset by a "stuck in Neutral" cost profile and persistent impairment charges. The slow bleed on the income statement and its effect on book value is something that likely gets rationalized by the Street, thanks to the consistently improving Order rates. However, we believe the current valuation is generous given the lack of legitimate, consistent, profit potential at the operating level. Orders improvement is a big step toward earnings normality, but until stubborn SG&A and pedestrian gross margins change, we believe investors cannot get amply rewarded by the equity."
For more ratings news on Toll Bros. click here and for the rating history of Toll Bros. click here.
Shares of Toll Bros. closed at $20.27 yesterday.
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