One Reason Why Toll Brothers (TOL) Stock Closed Lower Today

Toll Brothers (TOL) stock closed in the red on Monday as Credit Suisse downgraded shares to ‘neutral’ from ‘outperform.’
By Kaya Yurieff ,

NEW YORK (TheStreet) -- Shares of Toll Brothers (TOL) - Get Report closed down 1.08% to $27.94 on Monday as Credit Suisse cut its rating on the stock to "neutral" from "outperform," the Fly reports.

Toll Brothers is a Horsham, PA-based luxury home builder.

Credit Suisse is less constructive on the company's exposure to the high-end market in the near-term due to lagging high-end trends in the Northeast and Mid-Atlantic, according to the Fly. The firm also cited recent financial market volatility.

The firm also lowered its price target to $30 from $34 on Toll stock.

Additionally, Credit Suisse said June traffic declines are "worrisome" and suggest near-term challenges for builders.

"We're adopting a more neutral stance on builders heading into 2Q earnings following a sharp decline in buyer traffic seen in our June Survey of Real Estate Agents - typically a good predictor of near-term stock performance," the firm wrote in an analyst note earlier today.

Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.

The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share and attractive valuation levels.

But the team also finds weaknesses including disappointing return on equity, a generally disappointing performance in the stock itself and poor profit margins.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: TOL

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