Deep Dive Into Toast Stock: Analyst Perspectives (13 Ratings)

Toast TOST has been analyzed by 13 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments 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 $22.85, accompanied by a high estimate of $32.00 and a low estimate of $15.00. Observing a 36.74% increase, the current average has risen from the previous average price target of $16.71.

Investigating Analyst Ratings: An Elaborate Study

The perception of Toast by financial experts is analyzed through recent analyst actions. The following summary presents 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: Gaining insights, analysts provide 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.

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.

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.

Breaking Down Toast's Financial Performance

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Positive Revenue Trend: Examining Toast's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 34.9% as of 31 December, 2023, showcasing a substantial increase in 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 falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -3.07%, the company may face hurdles in generating optimal 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 -1.9%, the company may face hurdles in achieving optimal financial performance.

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

Analyst Ratings: Simplified

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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