Breaking Down Toast: 11 Analysts Share Their Views

In the last three months, 11 analysts have published ratings on Toast TOST, offering a diverse range of perspectives from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $21.45, a high estimate of $32.00, and a low estimate of $15.00. Marking an increase of 27.45%, the current average surpasses the previous average price target of $16.83.

Decoding Analyst Ratings: A Detailed Look

A clear picture of Toast's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Toast. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Toast compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Toast's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Toast's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Toast analyst ratings.

All You Need to Know About Toast

Toast is a U.S.-based restaurant technology company that provides point-of-sale, payment processing, and various software services to 106,000 restaurant locations across the United States at the end of December 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 $126 billion in gross platform volume in 2023. The firm's product offerings span point-of-sale systems, inventory and payroll management, delivery integration, e-commerce ordering, reservation management, and loyalty programs.

Toast: Delving into Financials

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Growth: Toast displayed positive results in 3 months. As of 31 December, 2023, the company achieved a solid revenue growth rate of approximately 34.9%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Financials sector.

Net Margin: Toast's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -3.47%, 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 -3.07%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Toast's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -1.9%, the company may face hurdles in achieving optimal financial returns.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.04.

How Are Analyst Ratings Determined?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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