Toast initiated with an Outperform at BMO Capital

BMO Capital initiated coverage of Toast (TOST) with an Outperform rating and $45 price target The firm believes Toast will be a long-term winner in the U.S. restaurant technology and payments market, benefiting from a comprehensive product offering and highly efficient” go-to-market strategy. Street expectations anticipate a modest deterioration in the company’s location and unit economics going forward with low-single-digit recurring location growth, but BMO’s EBITDA forecast for 2026 is 5% ahead of consensus, the analyst tells investors in a research note. The firm views the recent 15% as an attractive entry point given Toast’s “de-risked” EBITDA guidance.