Toll Brothers Target Raised by RBC

Toll Brothers shares were slightly higher Thursday morning after RBC Capital Markets raised its price target on the homebuilder to $45 from $43 while maintaining an outperform rating on the stock. The broker justified its price target boost by saying it sees the company as having “an improving risk/reward profile,” and that its outperform rating is supported by the company’s “proven management, a strong presence in the luxury segment of the housing market, and incrementally consistent earnings performance.”

RBC Capital, which described the company as being a luxury-segment focused homebuilder, said Toll Brothers’ focus on “affordable luxury gives it exposure to price points” near $750,000, “where activity remains robust.” The broker added it believes that concerns over the loss of foreign buyers and the possible “impact of higher interest rates on demand are overstated.”

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