Toast Stock: A Deep Dive Into Analyst Perspectives (8 Ratings)

Ratings for Toast TOST were provided by 8 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $29.38, a high estimate of $33.00, and a low estimate of $26.00. This upward trend is apparent, with the current average reflecting a 6.57% increase from the previous average price target of $27.57.

Deciphering Analyst Ratings: An In-Depth Analysis

An in-depth analysis of recent analyst actions unveils 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: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Toast. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' 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.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Toast's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Toast analyst ratings.

All You Need to Know About Toast

Toast is a us-based restaurant technology company that provides point-of-sale, payment processing, and various software services to 112,000 restaurant locations across the United States at the end of March 2024. 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.

Key Indicators: Toast's Financial Health

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 31.26% as of 31 March, 2024, showcasing a substantial increase in 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 -7.72%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Toast's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -6.93%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Toast's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -4.14%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Toast's debt-to-equity ratio is below the industry average. With a ratio of 0.03, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Understanding the Relevance of Analyst Ratings

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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