In-Depth Examination Of 8 Analyst Recommendations For Toast

Across the recent three months, 8 analysts have shared their insights on Toast TOST, expressing a variety of opinions spanning from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated Toast and provided 12-month price targets. The average target is $20.12, accompanied by a high estimate of $28.00 and a low estimate of $12.00. Surpassing the previous average price target of $17.75, the current average has increased by 13.35%.

Investigating Analyst Ratings: An Elaborate Study

In examining recent analyst actions, we gain insights into how financial experts perceive Toast. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Toast. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Toast compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Toast's stock. This comparison reveals trends in analysts' expectations over time.

To gain a panoramic view of Toast's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Toast analyst ratings.

Discovering Toast: A Closer Look

Toast is a U.S.-based restaurant technology company that provides point-of-sale, payment processing, and various software services to 99,000 restaurant locations across the United States at the end of September 2023. The firm generates sales from software subscription fees, as a percentage take rate from each financial transaction it processes, from loan origination and servicing fees from its Toast Capital arm, and from hardware installation and professional services. Unlike competitors, Toast intermediates every payment transaction on its platform, processing some $92 billion in gross platform volume in 2022. The firm's product offerings span point-of-sale systems, inventory and payroll management, delivery integration, e-commerce ordering, reservation management, and loyalty programs.

Key Indicators: Toast's Financial Health

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Toast displayed positive results in 3 months. As of 30 September, 2023, the company achieved a solid revenue growth rate of approximately 37.23%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Financials sector.

Net Margin: Toast's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -3.0%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Toast's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -2.78%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Toast's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -1.71%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Toast's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.03.

How Are Analyst Ratings Determined?

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

This article was generated by Benzinga's automated content engine and reviewed by an editor.