
Toast (TOST) Stock Forecast & Price Target
Toast (TOST) Analyst Ratings
Bulls say
Toast Inc. demonstrated strong financial performance with recurring revenue reaching $554 million, reflecting a 26.5% year-over-year growth, surpassing prior estimates. As margins are projected to expand between 60 to 110 basis points to a range of 34.1% to 34.6% of Non-GAAP FinTech & Subscription gross profit, this indicates an improvement in profitability. Additionally, the company's FinTech Solutions segment revenue growth of 22% year-over-year to $1,334 million signifies its vital role in driving the overall growth trajectory, supported by robust gross payment volume increases.
Bears say
Toast Inc's financial outlook appears negative due to a decline in its fintech net take rate, which fell to 0.58%, impacting revenue growth amidst a challenging restaurant industry climate. The company faces heightened competition, leading to pricing pressures on its integrated POS solutions, while ongoing economic issues, including deteriorating consumer credit and supply chain disruptions, threaten growth and profitability. Additionally, Toast's continued investments without profitability result in execution risks, compounded by expected margin pressures from rising memory chip costs affecting adjusted EBITDA margins in the coming years.
This aggregate rating is based on analysts' research of Toast and is not a guaranteed prediction by Public.com or investment advice.
Toast (TOST) Analyst Forecast & Price Prediction
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