Toll Brothers price target raised to $96 from $94 at Goldman Sachs

Goldman Sachs raised the firm’s price target on Toll Brothers to $96 from $94 but keeps a Sell rating on the shares after its Q1 earnings beat and delivery outlook. The firm is “impressed” with the company’s ability to leverage the uptick in demand through the start of the selling season, adding that this strategy also preserves the ability to customize and upgrade design features, leveraging the base of design centers, the analyst tells investors in a research note. The firm further cites Toll Brothers management belief that home-building gross margins can hold near current levels in the high-20% range vs an average of 24.9% in FY15-FY19.