The Toro Company (NYSE:TTC) is a prominent entity in the global market for professional and residential equipment. It operates through two main segments: Professional and Residential. The Professional segment offers equipment for turf and landscape maintenance, snow and ice management, and irrigation and lighting products. The Residential segment provides home solution products like mowers and snow throwers, distributed through a network of dealers and retailers.
The consensus price target for Toro's stock has shown an upward trend over the past year. A year ago, the average price target was $85.25, which slightly decreased to $84.5 a quarter ago. However, in the last month, the average price target increased to $93. This suggests growing optimism among analysts about Toro's future performance and stock value.
Toro's recent fiscal 2025 second-quarter results revealed an adjusted earnings per share (EPS) of $1.42, surpassing the Zacks Consensus Estimate of $1.38. This performance marks a slight increase from the $1.40 per share reported in the same quarter last year. Despite a 2.3% decline in revenue to $1.32 billion, the company's EPS exceeded its guidance, indicating resilience in challenging market conditions.
The company's management has updated its full-year guidance in response to ongoing challenges in the residential market. Despite mixed results, analyst Samuel Darkatsh from Raymond James has set a price target of $130 for Toro, reflecting a positive outlook for the company's stock. This target suggests confidence in Toro's strategic initiatives and potential for future growth.
Toro is currently experiencing signs of stabilization, with revenue growth primarily driven by the Residential segment. However, the Professional segment continues to show weakness. The company has implemented cost-cutting initiatives and is focusing on shareholder returns, which are positive aspects. Despite these efforts, the stock is still considered not cheap enough compared to its peers to justify an upgrade.
