Assessing Toast: Insights From 14 Financial Analysts

Throughout the last three months, 14 analysts have evaluated Toast TOST, offering a diverse set of opinions from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within 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 $42.5, a high estimate of $50.00, and a low estimate of $29.00. This upward trend is apparent, with the current average reflecting a 3.46% increase from the previous average price target of $41.08.

Investigating Analyst Ratings: An Elaborate Study

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.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|-----------------------|---------------|---------------|--------------------|--------------------| |Adam Frisch |Evercore ISI Group |Announces |In-Line | $29.00|- | |Will Nance |Goldman Sachs |Lowers |Neutral | $38.00|$43.00 | |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 |

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 unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into 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.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Toast's market standing. Stay informed and make data-driven decisions with 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 134,000 restaurant locations across the United States as of December 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; it processed some $159 billion in gross platform volume in 2024. 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 Financial Performance

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: Toast's remarkable performance in 3M is evident. As of 31 December, 2024, the company achieved an impressive revenue growth rate of 29.15%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Financials sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Toast's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 2.39%, 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 2.16%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Toast's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 1.38%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Toast's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.02.

Analyst Ratings: Simplified

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.

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.