Toro's Analyst Ratings Shift as Financial Performance Declines

Toro experiences mixed analyst ratings and declining revenue as recent evaluations move from somewhat bullish to neutral. Analysts have also lowered price targets, reflecting cautious sentiments around the stock's future.

Date: 12-03-2025

AI Rating: 4

Analyst Ratings Overview: Recent evaluations from analysts regarding Toro reveal mixed sentiments. With two analysts in the 'Somewhat Bullish' category and another two classified as 'Indifferent', it paints a cautious picture of the company's outlook. Analysis shows that in the last 30 days, there have been no bullish sentiments reported, indicating a shift towards neutrality.

Price Targets and Adjustments: The average 12-month price target for Toro has decreased by 4.01% from the previous average of $93.50 to $89.75. Analysts like Michael Shlisky from DA Davidson have lowered their price target from $86.00 to $80.00, while Timothy Wojs of Baird also reduced his target from $88.00 to $84.00. While Ted Jackson from Northland Capital maintains a positive 'Outperform' rating with a price target of $100.00, the general trend indicates a pullback in expectations.

Revenue Challenges: Toro's revenue has faced declines of approximately -0.69% over three months, suggesting potential troubles in sustaining growth. This retreat in revenue growth compared to industry performance will likely weigh on investor confidence.

Net Income and Profit Margins: Despite revenue challenges, Toro exhibits a strong net margin of 5.31%, indicating effective cost management and profitability. This is a positive indicator as it suggests the company retains a healthy proportion of its revenue as profit.

Return on Equity: Toro's ROE is reported at 3.5%, outperforming industry averages. This suggests that Toro is effectively utilizing its equity capital to generate returns, which is generally viewed as a strong indicator by investors.

Debt Management: Toro's debt-to-equity ratio of 0.83 reflects a lower-than-average level of debt compared to equity, indicating that the company manages its debt prudently. This characteristic often reassures investors regarding potential risks associated with high leverage.

In summary, while Toro showcases strong profitability measures, the recent decline in revenue growth and adjustments in analyst price targets indicate a cautious outlook. Investors may want to keep an eye on the evolving analyst ratings and market conditions to make informed decisions.

Stocks: TTC