Toll Brothers (TOL) is expected to report in-line fiscal Q1 earnings while maintaining its full-year guidance and offering positive commentary, Oppenheimer said in a Tuesday note.

The company is scheduled to report its Q1 results on Feb. 17.

The brokerage said Toll's shares have outperformed year to date, rising 13% compared with a 1.3% gain in the S&P 500. The performance was supported by a favorable political backdrop, market rotation and improving supply-and-demand fundamentals.

Oppenheimer does not expect the company to raise its fiscal 2026 guidance following the Q1 report, despite viewing the current outlook as conservative. The firm sees upside to its fiscal 2026 earnings estimate of $13.77 per share, driven by stronger profitability largely in H2 and continued share repurchases.

Looking beyond 2026, Oppenheimer said Toll has compelling earnings power. The firm sees potential for the company to generate more than $18 per share over time, supported by normalized sales pace, margins and its positioning relative to other homebuilders.

Oppenheimer has an outperform rating on Toll and lifted its price target to $177 from $155, citing higher sector valuation multiples and its view that the company is better positioned than peers.

Toll Brothers shares were up 3.4% in recent trading.

Price: 157.35, Change: +5.12, Percent Change: +3.36