Citi upgraded Toll Brothers to Buy from Neutral, citing the luxury homebuilder's position as the only pure-play public luxury homebuilder poised to benefit from a K-shaped housing recovery. Analyst Anthony Pettinari raised the price target to $176 from $146, expecting Toll Brothers to outperform as affluent buyers face fewer affordability pressures. Redfin data showed luxury home prices rose nearly five times faster than non-luxury homes in the three months through May 2026. Pettinari also expects homebuilders to guide to stabilizing gross margins in the second half of 2026 after more than three years of compression. Toll Brothers stock rose 2% in premarket trading following the upgrade.
Toll Brothers IncCiti upgraded Toll Brothers to Buy and raised price target to $176, citing K-shaped recovery and affluent buyer strength.