Samad Samana, an analyst from Jefferies, maintained the Buy rating on Toast Inc (TOST – Research Report). The associated price target remains the same with $45.00.
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Samad Samana’s rating is based on a combination of factors including Toast Inc’s ability to post a strong fourth quarter performance. The company’s growth in net additions and resilient consumer spending in the restaurant sector are key drivers that support the positive outlook. Although the initial topline guidance for 2025 is expected to be conservative, the alignment with management’s recent commentary on adjusted EBITDA suggests potential for upside throughout the year.
Furthermore, Toast Inc’s multiple growth levers, particularly the expansion in core US SMB restaurants and newer growth segments, provide a promising avenue for future growth. The valuation, while currently high, is supported by the company’s robust growth rates and strong adjusted EBITDA margins. Overall, these factors contribute to the Buy rating as they indicate a solid foundation for continued performance and potential share price appreciation.
In another report released on February 4, Compass Point also reiterated a Buy rating on the stock with a $49.00 price target.
Based on the recent corporate insider activity of 133 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.