NEW YORK (TheStreet) --Shares of Toll Brothers Inc. (TOL) are up by 1.82% to $37.48 at the start of trading on Thursday morning, following a rating upgrade to "outperform" from "neutral" at Credit Suisse.
The firm raised its rating on the home builder as it believes Toll Brothers will be able to deliver more city living units next year.
"We believe consensus fails to fully capture the benefit of sharply higher city living deliveries in 2016. In addition, our Monthly Survey of Real Estate Agents suggests continued price appreciation in CA, where TOL has an increasingly strong position," Credit Suisse said in an analyst note.
The firm hiked its price target on Toll Brothers stock to $42 from its previous $40 price target.
Separately, TheStreet Ratings team rates TOLL BROTHERS INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate TOLL BROTHERS INC (TOL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year, increase in net income and notable return on equity. We feel its strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows: