Street Calls of the Week
Investing.com - Baird maintained its Neutral rating and $48.00 price target on Toast Inc. (NYSE:TOST) in a research note issued Monday. According to InvestingPro data, Toast currently trades at $37.57, with analyst targets ranging from $36 to $60, suggesting potential upside. The company maintains a robust market capitalization of $24 billion.
The financial services firm noted that Toast’s starter kits appear to target smaller restaurants that operate below the company’s core customer base, which typically generates approximately $1 million in annualized volume per location.
Toast has reduced prices on monthly software fees for its starter kits, while keeping processing fees unchanged, according to Baird’s analysis.
The research firm believes this pricing strategy aligns with the broader industry trend of companies competing on price to attract more merchant customers.
Baird analyst David Koning provided the assessment as part of the firm’s ongoing coverage of the restaurant technology platform provider.
In other recent news, Toast Inc. has garnered attention with its strong second-quarter earnings report. The company exceeded expectations, with several analysts adjusting their price targets upwards. Needham raised its target to $60, highlighting Toast’s robust performance and optimistic guidance for the third quarter. JPMorgan increased its target to $52, noting better-than-expected recurring gross profit and EBITDA metrics. RBC Capital also adjusted its target to $50, citing strong annual recurring revenue growth and record net location additions. Bernstein SocGen followed suit, elevating its target to $48, acknowledging the company’s impressive addition of 8,500 new locations, bringing the total to 148,000. Truist Securities set its target at $51, attributing this to anticipated faster recurring gross profit growth. These developments reflect Toast’s ongoing expansion and strong market presence in the U.S. restaurant segment.
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