Barclays and Seaport Research Turn Cautious on Toll Brothers (TOL) Ahead of Earnings

Toll Brothers, Inc. (NYSE:TOL) is included among the 15 Cash-Rich Dividend Stocks to Invest in Right Now.

On April 8, Barclays analyst Matthew Bouley trimmed his price recommendation on Toll Brothers, Inc. (NYSE:TOL) to $115 from $116. It kept an Underweight rating on the shares. The firm made broader adjustments across the homebuilding and building products space ahead of Q1 earnings. Barclays said it prefers building products and distributors with pricing power or vertical integration. It also warned that investors may want to stay away from homebuilders, noting that 2026 “shapes up to be a potential lost year,” as the analyst wrote in a research note.

A day earlier, on April 7, Seaport Research analyst Kenneth Zener downgraded Toll Brothers to Neutral from Buy and did not assign a price target. The firm lowered ratings across all the builders it covers, pointing to “rising concern that housing activity is poised to slow further.” Seaport described the group as shifting from a “value-trap” to “catching a falling knife.” The analyst said weaker job market growth challenges the earlier view that demand was starting to stabilize. In the same note, the firm said it expects further multiple compression until housing starts move closer to trough levels, in line with past cycles.

Toll Brothers, Inc. (NYSE:TOL) builds luxury homes across more than 60 markets in the United States. It serves a range of buyers, including first-time, move-up, active-adult, and second-home customers. The company also runs its own architectural, engineering, mortgage, title, land development, smart home technology, landscaping, and building components manufacturing operations.

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