In a report released yesterday, David Hynes from Canaccord Genuity maintained a Buy rating on Toast Inc (TOST – Research Report), with a price target of $48.00.
David Hynes has given his Buy rating due to a combination of factors that highlight Toast Inc’s impressive performance and growth potential. Toast has demonstrated strong financial results, with significant growth in annual recurring revenue (ARR) and an expansion in EBITDA margins, indicating a robust year-over-year performance. The company’s ability to add a substantial number of new locations and see a notable increase in gross payment volume further cements its position in the market.
Another factor contributing to the Buy rating is Toast’s strategic initiatives, including a significant enterprise win and the introduction of new SaaS functionalities for international markets. These efforts are expected to drive growth and increase the average revenue per user. Moreover, the company’s focus on AI investments is poised to enhance customer experience, potentially leading to upselling opportunities. Overall, the valuation of Toast’s shares, while not inexpensive, is justified by its sustainable growth trajectory and profitability improvements, supporting the positive outlook and Buy recommendation.
Hynes covers the Technology sector, focusing on stocks such as ServiceNow, Atlassian, and Workday. According to TipRanks, Hynes has an average return of 9.3% and a 54.93% success rate on recommended stocks.
In another report released today, Needham also reiterated a Buy rating on the stock with a $50.00 price target.