Toast Stock: A Deep Dive Into Analyst Perspectives (20 Ratings)

Ratings for Toast TOST were provided by 20 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $37.4, a high estimate of $49.00, and a low estimate of $25.00. This upward trend is apparent, with the current average reflecting a 20.88% increase from the previous average price target of $30.94.

Understanding Analyst Ratings: A Comprehensive Breakdown

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: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Toast. This information provides 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 predict movements in price targets, offering estimates for Toast's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Toast's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Toast analyst ratings.

Delving into Toast's Background

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.

Financial Insights: Toast

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: Toast displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 26.45%. This indicates a notable increase in the company's 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: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 4.29%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Toast's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 4.14%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Toast's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.56% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Toast's debt-to-equity ratio is below the industry average at 0.03, reflecting a lower dependency on debt financing and a more conservative financial approach.

The Core of Analyst Ratings: What Every Investor Should Know

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

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.

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