Toro (TTC) Valuation Check After Guidance Hike And Earnings Beat

Toro (TTC) is back in focus after management raised fiscal 2026 earnings guidance and updated its outlook for total company net sales growth to a range of 3% to 6.5%, up from 2% to 5%.

See our latest analysis for Toro.

Those guidance and earnings updates follow a strong 90 day share price return of 29.06% and a 1 year total shareholder return of 33.29%. However, the 3 year total shareholder return of a 5.14% decline and subdued recent 7 and 30 day share price returns suggest momentum has cooled in the short term.

If Toro’s guidance change has you rethinking where growth could come from next, it may be worth scanning 23 power grid technology and infrastructure stocks as another way to spot infrastructure related opportunities.

After a Q1 earnings beat, higher 2026 guidance and a recent share price surge, Toro now trades near US$95. With the stock sitting at a small premium to one valuation estimate, is there still a buying opportunity here, or is the market already pricing in future growth?

Most Popular Narrative: 2.8% Undervalued

Toro's most followed narrative pegs fair value at $98.25, just above the last close of $95.49, which puts the recent rally into sharper context.

The analyst price target for Toro has shifted from $92.60 to $98.25, reflecting updated views on valuation. The stock is trading around its 10 year median forward EBITDA multiple and free cash flow yield, with expectations for single digit earnings growth in what analysts describe as a more normalized 2026 backdrop.

Read the complete narrative.

Curious what justifies that higher fair value when revenue growth assumptions stay in the low single digits, margins soften slightly, and the model leans on a richer future earnings multiple?

Result: Fair Value of $98.25 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, weak residential demand and weather driven swings in snow and ice products could still pressure margins and make it harder to sustain the current fair value case.

Find out about the key risks to this Toro narrative.

Another Angle On Valuation

Our SWS DCF model points to a fair value of $87.21, which sits below the current $95.49 share price and contrasts with the $98.25 narrative fair value. With Toro screening as overvalued on this cash flow view, investors may be paying for a story that is already reflected in the price.

Look into how the SWS DCF model arrives at its fair value.

Next Steps

The mixed signals here might leave you torn. Take a moment to review the numbers yourself and decide where you stand, starting with 2 key rewards and 1 important warning sign.

Looking for more investment ideas?

If Toro has sharpened your focus, do not stop here. Use the screener to widen your watchlist and keep fresh opportunities on your radar before others spot them.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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