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Why The Toro Company (TTC) Stock Is Up Today

TTC Cover Image

What Happened?

Shares of outdoor equipment company Toro (NYSE: TTC) jumped 4.8% in the morning session after it received analyst upgrades from both DA Davidson and Longbow Research. DA Davidson raised its rating on the lawn care equipment manufacturer to Buy from Neutral, setting a price target of $93. The firm cited several positive factors, including strong late-spring sales according to dealer data and favorable trends in the company's residential segment. 

Additionally, a DA Davidson survey of golf courses suggests a promising 2025 season for Toro. Separately, Longbow Research also upgraded the stock to Buy from Neutral, assigning a higher price target of $100. The upgrades reflect a more positive outlook on improving market conditions ahead of Toro's upcoming earnings call next week.

After the initial pop the shares cooled down to $82.16, up 3.8% from previous close.

Is now the time to buy The Toro Company? Access our full analysis report here, it’s free.

What Is The Market Telling Us

The Toro Company’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The previous big move we wrote about was 3 days ago when the stock gained 4.1% on the news that the major indices rebounded, as Fed Chair Jerome Powell delivered dovish remarks at the much-awaited Jackson Hole symposium. Powell suggested that with inflation risks moderating and unemployment remaining low, the Federal Reserve might consider a shift in its monetary policy stance, including potential interest rate cuts. This outlook eased market concerns about prolonged high interest rates and their impact on economic growth. The prospect of lower borrowing costs bolstered investor confidence, particularly in sectors that have lagged, leading to a broad rally across the market.

The Toro Company is up 3.9% since the beginning of the year, but at $82.16 per share, it is still trading 11.3% below its 52-week high of $92.60 from August 2024. Investors who bought $1,000 worth of The Toro Company’s shares 5 years ago would now be looking at an investment worth $1,097.

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