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Investing.com - DA Davidson raised its price target on Toast Inc. (NYSE:TOST) to $46.00 from $40.00 on Tuesday, while maintaining a Neutral rating on the restaurant technology company’s stock. The target sits within the current analyst range of $35-$55, with Toast trading near its 52-week high of $49.55.
The price target increase comes ahead of Toast’s second-quarter earnings report, scheduled for release after market close on Tuesday, August 5, 2025, followed by a conference call at 5:00 PM ET. The $28.28 billion market cap company has shown impressive momentum, delivering an 88.19% return over the past year and maintaining strong revenue growth of 26.72%. According to InvestingPro, which offers 12+ additional insights about Toast’s performance, the stock currently trades at a P/E ratio of 173.8x.
DA Davidson expects Toast to meet or modestly exceed both the firm’s forecasts and the consensus estimates for the quarter.
The research firm also anticipates that Toast management will either affirm or modestly raise their financial guidance ranges for 2025 when they report results.
DA Davidson attributed the price target increase to shifting its valuation framework to its 2027 forecasts for the company.
In other recent news, Toast Inc. reported first-quarter results that exceeded expectations, with Non-GAAP FinTech & Subscription gross profit coming in 7% higher than DA Davidson’s forecast. Additionally, Toast’s adjusted EBITDA surpassed projections by 28%, prompting an upward revision in the company’s guidance. BMO Capital Markets responded by raising its price target for Toast to $45, citing strong execution and increased full-year 2025 guidance as key factors. Meanwhile, Piper Sandler adjusted its price target to $37, maintaining a Neutral rating, and noted the company’s upgraded FY25 EBITDA margin forecast, expecting a 47% year-over-year growth.
Keefe, Bruyette & Woods also raised their price target for Toast to $42, highlighting the company’s resilience amidst macroeconomic challenges and stable consumer trends. UBS maintained its Buy rating on Toast, emphasizing the company’s strong annual recurring revenue (ARR) growth as a crucial investment metric. The firm’s SaaS ARR continues to grow at a rate in the low 30s percentage range, which UBS considers significant. DA Davidson reiterated a neutral rating with a $40 price target, acknowledging the company’s positive financial performance. These developments reflect Toast’s ongoing business momentum and strategic financial management.
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