Piper downgrades Toast on ‘degrading conditions’ into 2024

Piper Sandler analyst Clarke Jeffries downgraded Toast to Neutral from Overweight with a price target of $17, down from $27. The company reported a “healthy” Q3 but managemenbt commentary suggests “degrading conditions,” the analyst tells investors in a research note. The firm sees increased uncertainty on Toast’s growth outlook based on descriptions of modest slowdowns in same-store transaction volume and moderating consumer spend. Piper believes it is prudent to lower revenue assumptions for next year and says the stock’s risk/reward is “turning less attractive here.”