10:27 AM EDT, 10/25/2024 (MT Newswires) -- Toll Brothers' ( TOL ) recent stock pullback due to increasing mortgage rates has opened a buying opportunity, Wedbush Securities said in a note Friday.

"We believe the average Toll buyer is more attuned to their personal financial situation, and with the stock market reaching all time highs in recent days, we think that could be a tailwind for demand," the investment firm said.

Wedbush also said that the positive demand comments made recently by Toll's public move up competitors "may be an encouraging read through" for the company.

The lack of existing homes in most markets drives move up buyers into new homes, benefiting Toll and other move up builders, Wedbush added.

Wedbush upgraded Toll to outperform from neutral and boosted its price target to $175 from $148.

Price: 151.99, Change: +1.28, Percent Change: +0.85