Toll Brothers (TOL) At Risk Into 4Q Results - Barclays

Barclays analyst, Matthew Bouley reiterated his Underweight rating on shares of Toll Bros. (NYSE: TOL) and cut his price target to $32 from $37 ahead of 4Q results on macro concerns and weak results from comparables.

The analyst stated "deteriorating housing trends through November, as seen from other builders (dhi, kbh) as well as our real estate AGENT survey, suggest downside to order and gross margin estimates. We are accordingly reducing order estimates for 4Q as well as order, revenue, margin, and eps estimates for FY’19". "While the near-term air pocket in housing demand is afflicting builders across price points, product types, and geographies, we continue to find TOL in a particularly difficult position given its high California exposure (~40% of gross profit), with unsustainably high gross margins (high 20s) in the state".

For an analyst ratings summary and ratings history on Toll Bros. click here. For more ratings news on Toll Bros. click here.

Shares of Toll Bros. closed at $32.97 yesterday.

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