Morgan Stanley analyst Josh Baer maintained a Buy rating on Toast Inc today and set a price target of $56.00.
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Josh Baer has given his Buy rating due to a combination of factors that highlight Toast Inc’s potential for sustained growth. The company has demonstrated impressive growth in its number of live locations, reaching 156,000, with expectations for even more net new locations in the coming years. This growth is supported by strong momentum in Enterprise, Retail, and International markets, as well as stability in the core US SMB market.
Furthermore, the management’s guidance suggests that these growth markets, which currently contribute around $100 million in annual recurring revenue, have the potential to scale significantly. Baer also notes that Toast’s stock is undervalued compared to its growth potential, trading at a lower PEG ratio than the large-cap software median. This, combined with positive market share gains, margin expansion, and profitability, positions Toast as a compelling investment opportunity.
In another report released today, Needham also reiterated a Buy rating on the stock with a $60.00 price target.
Based on the recent corporate insider activity of 113 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.