Toll Brothers upgraded to Buy from Neutral at Citi
Citi upgraded Toll Brothers (TOL) to Buy from Neutral with a price target of $176, up from $146. When homebuilder earnings kicks off with reports from D.R. Horton (DHI) and PulteGroup (PHM) report in the week of July 20, the firm expects homebuilders to point to second half gross margin stabilization after over three years of compression, as well as significant outperformance among higher average selling price communities and more affluent homebuyers, the analyst tells investors. While not calling to buy the entire group, the firm sees Toll outperforming in a K-shaped housing recovery, the analyst added.
Citi upgraded Toll Brothers (TOL) to Buy from Neutral with a price target of $176, up from $146.
When homebuilder earnings kicks off with reports from D.R.
Horton (DHI) and PulteGroup (PHM) report in the week of July 20, the firm expects homebuilders to point to second half gross margin stabilization after over three years of compression, as well as significant outperformance among higher average selling price communities and more affluent homebuyers, the analyst tells investors.
While not calling to buy the entire group, the firm sees Toll outperforming in a K-shaped housing recovery, the analyst added.