Analyst Expectations For Toast's Future

In the latest quarter, 11 analysts provided ratings for Toast TOST, 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 $22.64, a high estimate of $32.00, and a low estimate of $15.00. Witnessing a positive shift, the current average has risen by 41.5% from the previous average price target of $16.00.

Diving into Analyst Ratings: An In-Depth Exploration

The analysis of recent analyst actions sheds light on the perception of Toast by financial experts. 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: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Toast compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Toast's stock. This comparison reveals trends in analysts' expectations over time.

For valuable insights into Toast's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Toast analyst ratings.

Get to Know Toast Better

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: A Financial Overview

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Over the 3 months period, Toast showcased positive performance, achieving a revenue growth rate of 34.9% as of 31 December, 2023. This reflects a substantial increase in the company's 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 -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 falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -1.9%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Toast's debt-to-equity ratio is below the industry average at 0.04, reflecting a lower dependency on debt financing and a more conservative financial approach.

Analyst Ratings: Simplified

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.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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