Analyst Jason Kupferberg from Bank of America Securities maintained a Hold rating on Toast Inc (TOST – Research Report) and keeping the price target at $44.00.
Jason Kupferberg has given his Hold rating due to a combination of factors including Toast Inc’s strong first-quarter performance and the company’s current valuation. While the company exceeded expectations in several key metrics and raised its guidance for 2025, the valuation remains high, which suggests limited upside potential from the current stock price.
Despite the positive results, there are concerns about the pressure on SaaS ARPU and increasing competition in the market. Additionally, the gross payment volume growth was slightly below expectations, and the net location additions were also slightly under consensus, which contributes to the cautious outlook. These elements combined lead to the decision to maintain a Hold rating on the stock.
In another report released on April 30, D.A. Davidson also maintained a Hold rating on the stock with a $40.00 price target.
Based on the recent corporate insider activity of 131 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TOST in relation to earlier this year.