Deutsche Bank Reiterates Buy Rating and Raises Price Target To $37
Deutsche Bank noted, “Sell-off post F4Q12 and valuation discount to peers both ...unwarranted. Toll Brothers reported ....generally solid F4Q12 earnings ....with little impact from Sandy and above consensus ....orders, gross margins and earnings; ....however the stock traded off post earnings (-1.8%) and remains at a valuation ...discount to credit quality peers (1.7x vs. 1.8x). Two main investor concerns are likely the ....tax impact of fiscal cliff negotiations and ....gross margin guidance for FY2013.
We think these ...concerns are overdone and that both the .....intraday stock reaction and its valuation discount are ....unwarranted.”