02:47 PM EDT, 09/05/2025 (MT Newswires) -- Toll Brothers ( TOL ) is expected to grow its community count at the lower end of the 7% to 10% range in fiscal 2026 on account of slower demand conditions in certain markets, Wedbush said in a Friday note.

Noting the company's reiterated gross margin guidance for fiscal Q4, Wedbush said that labor savings are an incremental tailwind for gross margins but higher land costs may be a near-term offset for the company. Lumber and prices of other materials have remained "roughly flat" for a couple of years for the company, Wedbush analysts said.

Wedbush said the homebuilder has repurchased over 50% of its outstanding shares over the last 10 years, and that current dividend levels are "likely to be maintained" with excess cash to be used for share buybacks and small acquisition targets.

The firm maintained an outperform rating on the stock with a price target of $165.

Shares were up 1.4% in recent afternoon trading.

Price: 147.45, Change: +2.04, Percent Change: +1.41