
Toll Brothers (TOL) Stock Forecast & Price Target
Toll Brothers (TOL) Analyst Ratings
Bulls say
Toll Brothers has demonstrated a positive outlook for growth, with management observing increased foot and web traffic as they entered the fourth quarter of fiscal 2025, indicating resilience even during typically slow periods. Despite expectations for growth to fall within the low end of the 7% to 10% range for fiscal 2026 due to slower demand in certain markets, the company has maintained a strong conversion rate from deposit to order at approximately 80%, significantly above the historical average of 60%. This information suggests a solid demand base and effective sales strategies, positioning Toll Brothers favorably in the luxury homebuilding sector.
Bears say
The negative outlook on Toll Brothers's stock is primarily influenced by a reduction in expected deliveries, lowered to 11,200 from a previously anticipated range of 11,200 to 11,600 units, which indicates potential challenges in meeting sales targets. Despite maintaining a high average delivered price of $950,000 to $960,000 and an unchanged adjusted home sales gross margin of 27.25%, these metrics do not offset the decline in delivery expectations. Additionally, with a stable community count of 440 to 450 and consistent SG&A as a percentage of home sales revenues at 9.4% to 9.5%, the company's ability to capitalize on sales growth remains uncertain, compounded by the competitive landscape at higher price points.
This aggregate rating is based on analysts' research of Toll Brothers and is not a guaranteed prediction by Public.com or investment advice.
Toll Brothers (TOL) Analyst Forecast & Price Prediction
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