Citi upgrades Toll Brothers to buy, raises price target to $176 from $146

According to CNBC, Citi upgraded Toll Brothers (TOL) to buy from neutral and raised its price target to $176 from $146, implying 19% upside from Thursday’s close. Analyst Anthony Pettinari said investor focus is shifting to a modest recovery in 2027 and that Toll Brothers could outperform in a K-shaped housing recovery as the only pure-play public luxury homebuilder. Citi forecast single-family housing starts will rise 3% to 955,000 in 2027 after two straight years of declines, and said it expects more signs of growth in the homebuilding industry as earnings season begins later this month. Toll Brothers shares are up 9% year to date, and 13 of 19 analysts rate the stock buy or strong buy, according to LSEG data.