BTIG Assumes Toll Bros. (TOL) at Neutral

BTIG analyst Ryan Gilbert assumes coverage on Toll Bros. (NYSE: TOL) with a Neutral rating.

The analyst comments "We are assuming coverage of Toll Brothers (TOL) with a Neutral rating. TOL has made a number of targeted improvements to its business over the past few years which have led to a more efficient business and resilient returns, while eschewing a wholesale makeover. TOL has also benefited from a rebound in long-standing positions in the Mid-Atlantic and Northeast, which have become some of the most resilient homebuilding markets currently due to supply constraints. The net effect has been resilient gross margin and ROE relative to peers. Investors have taken note; the stock has outperformed the ITB in four of the past five years including YTD, and is +36% since 2023 vs. the ITB +2%. We believe the benefits of the business improvements have played out and are mostly incorporated into earnings at this point and we see limited room for further relative improvement in FY26. At a 1.7x PTB multiple, we believe investors fairly value the improved business model, resilient returns, and the earnings outlook, so we rate the stock Neutral."

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 $139.83 yesterday.

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