Toll Brothers (TOL) Stock Rises, Rating Upgraded at Buckingham
Bloomberg News
NEW YORK (TheStreet) -- Shares of Toll Brothers (TOL) - Get Report are rising by 0.80% to $27.62 in afternoon trading on Monday, as Buckingham Research lifted the company's stock to "buy" from "neutral" Monday.
The firm upped the Horsham, PA-based luxury home builder to $35 from $34 based on recent underperformance compared to its peers.
Buckingham analysts feel investors are being too negative about this rating and that Toll Brothers' has a greater value than its shares suggest on the surface.
Additionally, Toll Brothers reported higher-than-expected second quarter results in May and recently initiated a new 20 million share repurchase program.
Separately, 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. TheStreet Ratings has this to say about the recommendation:
We rate TOLL BROTHERS INC as a Hold with a ratings score of C. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, a generally disappointing performance in the stock itself and poor profit margins.
You can view the full analysis from the report here: TOL
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