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Wednesday, DA Davidson analyst Peter Heckmann adjusted the price target for Toast Inc. (NYSE:TOST) to $40.00, a decrease from the previous $42.00, while retaining a Neutral rating on the shares. According to InvestingPro data, analyst targets for Toast currently range from $26.40 to $50.00, reflecting mixed sentiment about the company’s valuation. Heckmann provided insight into the reasoning behind the adjustment, citing the upcoming financial report and expectations for the company’s performance.
Toast, a company specializing in restaurant software solutions, is poised to release its first-quarter earnings after the market closes on Thursday, May 8, 2025. A conference call to discuss the results is scheduled for 5 pm ET on the same day. Analysts, including Heckmann, anticipate that Toast’s financial results will align with or slightly surpass their projections, which are also in line with the broader market consensus.
Heckmann anticipates that Toast’s management will either confirm or make slight revisions to their initial financial guidance for the year 2025 following the announcement of the results. The slight reduction in the price target to $40 reflects a cautious but not pessimistic outlook, as the Neutral rating suggests a wait-and-see approach ahead of the company’s forthcoming earnings report. InvestingPro analysis reveals 8 additional key insights about Toast’s financial health and growth prospects, available exclusively to subscribers.
The financial community will be watching closely to see if Toast can meet or exceed expectations and provide a stable financial outlook for the rest of the year. Investors and analysts will be particularly interested in any changes to the company’s guidance, which could signal Toast’s confidence in its growth trajectory and market position.
Toast’s performance in the upcoming earnings report and conference call will likely be a significant factor for investors as they assess the company’s value and prospects in a competitive technology and services market geared towards the restaurant industry.
In other recent news, Toast Inc. has announced a significant partnership with Dine Brands Global (NYSE:DIN), Inc., the parent company of Applebee’s Neighborhood Grill + Bar. This collaboration will see Toast’s technology integrated across approximately 1,600 Applebee’s locations by the end of 2024. Despite the scale of this deal, DA Davidson maintained a Neutral rating on Toast, with a consistent price target of $42.00, indicating that the agreement may not significantly impact Toast’s immediate financial outlook. Meanwhile, BMO Capital Markets adjusted its price target for Toast from $48.00 to $44.00 but maintained an Outperform rating, citing expectations of steady growth in gross payment volume and subscription services revenue.
Wells Fargo (NYSE:WFC) upgraded Toast’s stock rating from Underweight to Overweight, raising the price target to $39.00, highlighting Toast’s market share growth in the U.S. restaurant sector. The firm views Toast’s ability to secure substantial enterprise deals as a key growth driver. Evercore ISI initiated coverage on Toast with an In Line rating and a price target of $29.00, noting the company’s achievements in the small to medium-sized business restaurant sector but expressing concerns about near-term challenges, such as a slowdown in average revenue per user. These recent developments reflect a mixed outlook for Toast, with analysts offering varied perspectives on the company’s growth potential and market positioning.
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