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Compass Point Remains Neutral on Toll Brothers (TOL) Following EPS Miss

August 26, 2015 7:53 AM

Compass Point maintained a Neutral rating and $37.50 price target on Toll Bros. (NYSE: TOL) following the company's 3Q15 earnings results. TOL reported EPS of $0.42, missing the Street’s consensus estimate of $0.50.

Analyst Wilkes Graham commented, "We maintain our Neutral rating and $37.50 price target on shares of TOL. Following a full review of the Company's 3Q15 earnings, we are publishing our updated model and changes to our underlying modeling assumptions. Despite (1) Management revising their HB margin and SG&A guidance upwards and downwards (respectively) for the remainder of 2015, and (2) the Company's August contracts experiencing 16% yoy growth, we continue to view the stock fairly valued at current levels- particularly given the Company's suppressed delivery volumes YTD."

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 $35.08 yesterday.

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