Cracking The Code: Understanding Analyst Reviews For Toast

In the last three months, 17 analysts have published ratings on Toast TOST, offering 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 provide deeper insights through their assessments of 12-month price targets, revealing an average target of $35.12, a high estimate of $49.00, and a low estimate of $25.00. Observing a 22.8% increase, the current average has risen from the previous average price target of $28.60.

Diving into Analyst Ratings: An In-Depth Exploration

A comprehensive examination of how financial experts perceive Toast is derived from recent analyst actions. The following is a detailed summary of 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: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Toast compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Toast's future value. Examining the current and prior targets provides insight into analysts' changing 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 us-based restaurant technology company that provides point-of-sale, payment processing, and various software services to 127,000 restaurant locations across the United States as of September 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.

Toast: Delving into Financials

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Positive Revenue Trend: Examining Toast's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 26.45% as of 30 September, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Financials sector.

Net Margin: Toast's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 4.29%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Toast's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 4.14%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 2.56%, the company showcases effective utilization of assets.

Debt Management: With a below-average debt-to-equity ratio of 0.03, Toast adopts a prudent financial strategy, indicating a balanced approach to debt management.

Analyst Ratings: What Are They?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

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.

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