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BNP Paribas changed its view on the company from a buy to a neutral rating. A neutral rating means the firm expects the stock to perform roughly in line with the broader market rather than beating it. The firm set a target price of $35, which is only slightly above where the stock trades now.
While the average target from all analysts remains higher at $38, a downgrade from a major firm like BNP Paribas is a notable shift in sentiment. It suggests that after a period of strong growth, some analysts see less room for the stock to rise in the near term.
Source: BNP Paribas
RBC Capital raised its price target for Toast to $44, up from the $36 target it set only a week ago. This move suggests the firm sees significantly more room for the stock to rise from its current price of about $34. While the average analyst target across all firms is lower at $38, this second quick increase from RBC signals a high level of confidence in the company's ability to keep winning over more restaurants.
Source: RBC Capital
RBC Capital kept its rating at Sector Perform, which means they expect the stock to perform in line with the rest of its industry. While they raised their price target from $31 to $36, the new target is still slightly below the current price. This suggests the firm sees the business as fairly valued at these levels rather than a bargain. The average target across all analysts who follow the company is now about $38. This move follows a period of strong growth for the restaurant software maker, which has recently reached a scale where it can generate consistent cash from its existing customer base.
Source: RBC Capital
Retail sales in the U.S. dropped by about 0.6 percent in July, a much sharper decline than the small gain analysts expected. This is the largest monthly pullback in over a year as shoppers spent less on cars and online purchases.
For a company like Toast that earns a fee on every sandwich or coffee sold through its systems, a broad pullback in consumer spending is a risk. If people eat out less or spend less per meal to save money, it directly slows the growth of the payments revenue that fuels the company's profits.
Source: Bloomberg Markets and Finance
Truist Financial raised its price target for the stock to $39 from $33. This adjustment follows the company's recent quarterly results, which showed a record number of new restaurant locations joining the platform. While the firm is more optimistic about the stock's value, it did not change its overall rating. A price target is simply an analyst's estimate of where the stock will trade in the future, and this update suggests the firm sees more room for the stock to rise as the business scales.
Source: Truist Financial
Management consistently sets a bar they can clear, delivering steady beats for nearly two years. This track record suggests their forecasts are reliable and they have a firm grip on the business.
| Expectation | |
|---|---|
| EPS | $0.37 |
| Revenue | $1.97B |