
Toll Brothers (TOL) Stock Forecast & Price Target
Toll Brothers (TOL) Analyst Ratings
Bulls say
Toll Brothers has experienced an increase in foot and web traffic at the start of F4Q25, an encouraging sign given the typical seasonal slowdown, which may indicate robust consumer interest. Despite the slower demand in certain markets, the company anticipates growth in FY26 in the range of 7% to 10%, suggesting resilience in its business model. Additionally, the elevated conversion rate from deposit to order at approximately 80% in F3Q25, significantly above the historical average of 60%, underscores strong buyer confidence and effective sales strategies.
Bears say
Toll Brothers has lowered its delivery forecast to 11,200 units, which signals potential weakness in demand for luxury homes, a critical aspect of its business model. Despite maintaining a stable average delivered price per home and adjusted home sales gross margin, the company's selling, general, and administrative expenses remain unchanged at 9.4% to 9.5% of home sales revenues, indicating operational inefficiencies amid declining deliveries. Additionally, while lumber prices and material costs have remained flat, the luxury market may face headwinds as higher price points limit customer access, potentially leading to competitive disadvantages relative to entry-level builders.
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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