As reported earlier, RBC Capital analyst Michael Dahl downgraded Toll Brothers to Sector Perform from Outperform and lowered his price target to $37 from $38. The analyst cites a "sharper than expected weakness in orders and likelihood of further near-term declines", with softer margin assumptions attributed to a weaker outlook for orders. Dahl adds that while Toll Brothers outperformed its peer group over the past few months and its valuation remains relatively cheap, the recent order trends are making him more cautious about the company's fundamental outlook.