RBC Capital Believes Toll Brothers (NYSE: TOL) Still Has Room to Grow

By Jason Carr

In a report released today, Robert Wetenhall from RBC Capital reiterated a Buy rating on Toll Brothers (NYSE: TOL), with a price target of $43. The company’s shares closed last Friday at $37.84, close to its 52-week high of $38.

According to TipRanks.com, Wetenhall is a top 25 analyst with an average return of 13.1% and a 79.1% success rate. Wetenhall covers the Industrial Goods sector, focusing on stocks such as Continental Building Products, Installed Building Products, and Masonite International.

Currently, the analyst consensus on Toll Brothers is Moderate Buy and the average price target is $39.60, representing a 4.7% upside.

In a report issued on May 16, Mizuho Securities also initiated coverage with a Buy rating on the stock with a $44 price target.

Based on Toll Brothers’ latest earnings report for the quarter ending January 31, the company posted quarterly revenue of $921 million and quarterly net profit of $70.42 million. In comparison, last year the company earned revenue of $1.12 billion and had a net profit of $89.05 million.

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Toll Brothers, Inc. engages in the design, building, marketing, and arranging of financing for detached and attached homes in residential communities. It operates through the Traditional Home Building and City Living segments. The Traditional Home Building segment builds and sells homes for detached and attached homes in luxury residential communities in affluent suburban markets and and cater to move-up, empty-nester, active-adult, age-qualified, and second-home buyers. The City Living segment builds and sells homes in urban infill markets through Toll Brothers City Living. The company was founded by Robert I. Toll and Bruce E. Toll in 1967 and is headquartered in Horsham, PA.