During the last three months, 16 analysts shared their evaluations of Toast TOST, revealing diverse outlooks 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.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 3 | 4 | 8 | 1 | 0 |
| Last 30D | 3 | 2 | 4 | 0 | 0 |
| 1M Ago | 0 | 1 | 0 | 0 | 0 |
| 2M Ago | 0 | 1 | 1 | 1 | 0 |
| 3M Ago | 0 | 0 | 3 | 0 | 0 |
Analysts have set 12-month price targets for Toast, revealing an average target of $43.5, a high estimate of $50.00, and a low estimate of $30.00. This current average reflects an increase of 9.32% from the previous average price target of $39.79.
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.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Daniel Perlin | RBC Capital | Raises | Sector Perform | $45.00 | $40.00 |
| David Hynes | Canaccord Genuity | Raises | Buy | $48.00 | $43.00 |
| Tien-Tsin Huang | JP Morgan | Raises | Neutral | $42.00 | $36.00 |
| Timothy Chiodo | UBS | Raises | Buy | $47.00 | $41.00 |
| Rufus Hone | BMO Capital | Raises | Outperform | $48.00 | $46.00 |
| David Koning | Baird | Raises | Neutral | $40.00 | $38.00 |
| Josh Baer | Morgan Stanley | Raises | Overweight | $50.00 | $46.00 |
| Sanjay Sakhrani | Keefe, Bruyette & Woods | Raises | Market Perform | $42.00 | $40.00 |
| Mayank Tandon | Needham | Maintains | Buy | $50.00 | $50.00 |
| Rayna Kumar | Oppenheimer | Announces | Outperform | $46.00 | - |
| Jeff Cantwell | Wells Fargo | Raises | Underweight | $30.00 | $25.00 |
| Will Nance | Goldman Sachs | Lowers | Neutral | $40.00 | $45.00 |
| Rufus Hone | BMO Capital | Announces | Outperform | $45.00 | - |
| Sanjay Sakhrani | Keefe, Bruyette & Woods | Raises | Market Perform | $40.00 | $29.00 |
| Peter Heckmann | DA Davidson | Lowers | Neutral | $38.00 | $44.00 |
| Will Nance | Goldman Sachs | Raises | Neutral | $45.00 | $34.00 |
Key Insights:
- Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Toast. This insight gives a snapshot of analysts' perspectives on 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 explore the dynamics of price targets, providing estimates for the future value of Toast's stock. This examination reveals shifts in analysts' expectations over time.
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Toast's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
Stay up to date on Toast analyst ratings.
Get to Know Toast Better
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's Economic Impact: An Analysis
Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.
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. 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 falls below industry averages, indicating challenges in achieving 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 is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 4.14%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): Toast's ROA excels beyond industry benchmarks, reaching 2.56%. This signifies efficient management of assets and strong financial health.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.03.
The Significance of Analyst Ratings Explained
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.
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.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.
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