In the last three months, 14 analysts have published ratings on Toast (NYSE:TOST), offering a diverse range of perspectives from bullish to bearish.
The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 3 | 3 | 7 | 1 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 1 | 2 | 3 | 0 | 0 |
| 3M Ago | 2 | 0 | 4 | 1 | 0 |
The 12-month price targets, analyzed by analysts, offer insights with an average target of $27.21, a high estimate of $33.00, and a low estimate of $19.00. This upward trend is apparent, with the current average reflecting a 13.0% increase from the previous average price target of $24.08.
Decoding Analyst Ratings: A Detailed Look
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 |
|---|---|---|---|---|---|
| Dan Dolev | Mizuho | Raises | Outperform | $33.00 | $21.00 |
| Charles Nabhan | Stephens & Co. | Maintains | Equal-Weight | $28.00 | $28.00 |
| Moshe Katri | Wedbush | Maintains | Outperform | $30.00 | $30.00 |
| Mayank Tandon | Needham | Maintains | Buy | $30.00 | $30.00 |
| Sanjay Sakhrani | Keefe, Bruyette & Woods | Maintains | Market Perform | $26.00 | $26.00 |
| Moshe Katri | Wedbush | Announces | Outperform | $30.00 | - |
| David Koning | Baird | Maintains | Neutral | $28.00 | $28.00 |
| Dan Dolev | Mizuho | Raises | Neutral | $21.00 | $17.00 |
| Clarke Jeffries | Piper Sandler | Raises | Neutral | $25.00 | $20.00 |
| Daniel Perlin | RBC Capital | Raises | Sector Perform | $27.00 | $23.00 |
| David Hynes | Canaccord Genuity | Raises | Buy | $28.00 | $22.00 |
| Andrew Bauch | Wells Fargo | Raises | Underweight | $19.00 | $17.00 |
| Sanjay Sakhrani | Keefe, Bruyette & Woods | Raises | Market Perform | $26.00 | $25.00 |
| Mayank Tandon | Needham | Raises | Buy | $30.00 | $26.00 |
Key Insights:
- Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Toast. This information provides a snapshot of how analysts perceive 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: Understanding forecasts, analysts offer estimates for Toast's future value. Examining the current and prior targets provides insight into analysts' changing expectations.
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Toast's market standing. Stay informed and make well-considered decisions with our Ratings Table.
Stay up to date on Toast analyst ratings.
Discovering Toast: A Closer Look
Toast is a us-based restaurant technology company that provides point-of-sale, payment processing, and various software services to 112,000 restaurant locations across the United States at the end of March 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.
Key Indicators: Toast's Financial Health
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
Revenue Growth: Toast displayed positive results in 3 months. As of 31 March, 2024, the company achieved a solid revenue growth rate of approximately 31.26%. 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 is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -7.72%, the company may encounter challenges in effective cost control.
Return on Equity (ROE): Toast's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -6.93%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): Toast's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -4.14%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: With a below-average debt-to-equity ratio of 0.03, Toast adopts a prudent financial strategy, indicating a balanced approach to debt management.
Analyst Ratings: What Are They?
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.
This article was generated by Benzinga's automated content engine and reviewed by an editor.