10 Analysts Assess Toast: What You Need To Know

Analysts' ratings for Toast (NYSE:TOST) over the last quarter vary from bullish to bearish, as provided by 10 analysts.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $41.8, a high estimate of $50.00, and a low estimate of $29.00. This upward trend is apparent, with the current average reflecting a 1.65% increase from the previous average price target of $41.12.

Deciphering Analyst Ratings: An In-Depth Analysis

An in-depth analysis of recent analyst actions unveils how financial experts perceive Toast. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Toast. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Toast compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Toast's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Toast's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Toast analyst ratings.

Get to Know Toast Better

Toast is a US-based restaurant technology company that provides point-of-sale, payment processing, and various software services to 140,000 restaurant locations across the United States as of the end of March 2025. The firm generates sales from software subscription fees, a percentage take rate from each financial transaction it processes, loan origination and servicing fees from its Toast Capital arm, and hardware installation and professional services. Unlike competitors, Toast intermediates every payment transaction on its platform; it processed some $159 billion in gross platform volume in 2024. The firm's product offerings span point-of-sale systems, inventory and payroll management, delivery integration, e-commerce ordering, reservation management, and loyalty programs.

Key Indicators: Toast's Financial Health

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Positive Revenue Trend: Examining Toast's financials over 3M reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 24.37% as of 31 March, 2025, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Financials sector.

Net Margin: Toast's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 4.19%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Toast's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 3.48%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Toast's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 2.25%, the company showcases efficient use of assets and strong financial health.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.01.

The Core of Analyst Ratings: What Every Investor Should Know

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

Breaking: Wall Street's Next Big Mover

Benzinga's #1 analyst just identified a stock poised for explosive growth. This under-the-radar company could surge 200%+ as major market shifts unfold. Click here for urgent details.

This article was generated by Benzinga's automated content engine and reviewed by an editor.