Cracking The Code: Understanding Analyst Reviews For Toast

Ratings for Toast TOST were provided by 22 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $26.36, with a high estimate of $32.00 and a low estimate of $17.00. Witnessing a positive shift, the current average has risen by 13.18% from the previous average price target of $23.29.

Interpreting Analyst Ratings: A Closer Look

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 adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response 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 provide insights into price targets, offering estimates for the future value of Toast's stock. This comparison reveals trends in analysts' expectations over time.

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.

Discovering Toast: A Closer Look

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.

Understanding the Numbers: Toast's Finances

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by 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 31.26% as of 31 March, 2024, 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 -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 lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -4.14%, 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 0.03.

How Are Analyst Ratings Determined?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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