DA Davidson analyst Peter Heckmann downgraded Toast (TOST) to Neutral from Buy with a price target of $38, down from $44, following management’s commentary on 2025 margin expansion at an investment conference. While the firm believes management is making the right moves to make Toast a long-term leader in the integrated software and payment solutions market for the restaurant verticals, it says the “surprise margin commentary was unsettling, and the valuation doesn’t leave much room for uncertainty.” Toast’s CFO relayed that management expected more modest expansion in adjusted EBITDA margins in 2025 as compared to 2024, DA Davidson points out.
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