Toll Brothers (NYSE:TOL) stock is soaring 5.07% in Friday's pre-market trading session, despite a minor target price cut from JP Morgan. The luxury homebuilder's shares are showing resilience following its strong third-quarter earnings report released earlier this week.
JP Morgan analyst Michael Rehaut maintained a Hold rating on Toll Brothers but slightly lowered the price target to $136.00 from $139.00. This adjustment comes after the company's impressive quarterly results, where it beat expectations with revenues of $2.9 billion, 3.1% ahead of forecasts. Toll Brothers also reported statutory earnings per share (EPS) of $3.73, surpassing estimates by 2.6%.
The positive market reaction suggests that investors are focusing on Toll Brothers' strong performance and future prospects rather than the minor price target reduction. Analysts' consensus forecasts for 2026 remain largely unchanged, with expected revenues of $10.8 billion and EPS of $14.16. The company's ability to outperform in a challenging housing market environment appears to be bolstering investor confidence, driving the stock's significant pre-market surge.