Raymond James analyst Buck Horne downgraded Toll Brothers to Market Perform from Outperform following a review of last week's Q2 results, saying he is "concerned" that shares will be range-bound near-term due to reduced estimates, a lack of upcoming catalysts, and lingering West Coast issues. In a research note to investors, Horne says a greater degree of pricing pressure than expected has emerged in Toll's markets, leading to higher selling incentives and reduced FY19 gross margin guidance, and says that an analysis of of re-sale market conditions suggests that heightened year-over-year re-sale inventory at Toll's price points will remain a "lingering" issue this summer, most noticeably in California, Seattle, and Dallas. Toll will remain a "show-me" story until it can demonstrate margin stability and reaccelerating ROIC metrics, Horne says.