KeyBanc Downgrades Toll Bros. (TOL) to Hold; Valuation Call
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Price: $152.53 --0%
Rating Summary:
22 Buy, 11 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 9 | Down: 21 | New: 35
Rating Summary:
22 Buy, 11 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 9 | Down: 21 | New: 35
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KeyBanc downgraded Toll Bros. (NYSE: TOL) from Buy to Hold.
KeyBanc analyst said, "We lowered our rating on valuation, despite stable operating performance into 2012, as only modest earnings growth limits significant upside from a book multiple basis. We think TOL remains among the "best-in-class" within our framework that favors builders with: 1) a gross margin strategy; 2) low fixed costs; and 3) effective capital deployment, but patience is warranted given only modest equity accretion in 2012. Despite its recent acquisition, the midpoint of its core guidance (2,600) implies flat closings in 2012, consistent with our view of little growth in demand in 2012."
"We lowered our 2012 EPS estimate from $0.19 to $0.13 largely reflecting modestly lower gross margins, partly tied to purchase accounting at its CamWest acquisition..."
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 $20.77 yesterday.
KeyBanc analyst said, "We lowered our rating on valuation, despite stable operating performance into 2012, as only modest earnings growth limits significant upside from a book multiple basis. We think TOL remains among the "best-in-class" within our framework that favors builders with: 1) a gross margin strategy; 2) low fixed costs; and 3) effective capital deployment, but patience is warranted given only modest equity accretion in 2012. Despite its recent acquisition, the midpoint of its core guidance (2,600) implies flat closings in 2012, consistent with our view of little growth in demand in 2012."
"We lowered our 2012 EPS estimate from $0.19 to $0.13 largely reflecting modestly lower gross margins, partly tied to purchase accounting at its CamWest acquisition..."
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 $20.77 yesterday.
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