Morgan Stanley ups Toast target, elevates to ‘Top Pick’

Morgan Stanley raised the firm’s price target on Toast (TOST) to $50 from $46 and keeps an Overweight rating on the shares following the Q4 report. The firm also elevated the stock to “Top Pick,” replacing CCC Intelligent Solutions (CCCS). With Toast’s momentum “well intact across growth vectors, a new bull case fully forms,” the analyst tells investors in a research note. Morgan Stanley believes the company is well positioned to see more meaningful contribution from enterprise, international and retail adjacencies, while its core U.S. market is “sustaining rapid growth.” Toast continues to beat its guidance and manage expectations well as its profitability delivers rapid growth at scale, contends the firm.