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Fly News Breaks for August 22, 2019
Aug 22, 2019 | 08:41 EDT
As previously reported, Wells Fargo analyst Truman Patterson downgraded Toll Brothers to Market Perform from Outperform and lowered his price target on the stock to $39 from $45. Although the shares trade at roughly Book Value, the analyst believes the equity lacks a catalyst over the near-to-intermediate term to drive outperformance. Further, he believes 2020 revenues will essentially remain flat, providing little in the way of operating leverage, while gross margins decline 25 bps - likely creating another year of declining Operating Profit.