Toll Brothers upgraded to Neutral from Sell at Goldman Sachs

Goldman Sachs analyst Susan Maklari upgraded Toll Brothers to Neutral from Sell with a price target of $124, up from $112. Toll’s return on equity has improved about 840 basis points since FY19 to the firm’s 20.3% estimate for FY24, putting it above the 18.5% average for builders under the analyst’s coverage, notes Goldman. The firm is increasingly confident Toll’s revenues, profitability, and returns will hold ahead of historical norms given its view that new home sales will continue to outperform, the analyst tells investors.