J.P. Morgan analyst Tien Tsin Huang has maintained their neutral stance on TOST stock, giving a Hold rating yesterday.
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Tien Tsin Huang’s rating is based on a combination of factors including Toast Inc.’s strong performance in the fourth quarter, which was highlighted by impressive growth metrics and healthy key performance indicators. Despite these positive outcomes, the company’s guidance for fiscal year 2025 was mixed, with expectations for recurring gross profit slightly below market consensus, although EBITDA projections were more favorable.
Tien Tsin Huang appreciates Toast’s efforts in diversifying its platform into new verticals and geographic markets, indicating potential for future growth. However, the analyst remains cautious due to the company’s high valuation relative to its peers, combined with its exposure to discretionary spending and inflationary pressures, leading to a Hold rating. The analysis suggests optimism about Toast’s trajectory but points to the need for prudent investment decisions given the competitive landscape and economic uncertainties.
Based on the recent corporate insider activity of 132 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TOST in relation to earlier this year.