Toast initiated with an Equal Weight at Stephens

Stephens analyst Charles Nabhan initiated coverage of Toast with an Equal Weight rating and $18 price target. The company has established strong brand recognition and a leading share of the small business payments space, enabling restaurants to improve operations while meeting changes in consumer demand, the analyst tells investors in a research note. The neutral rating reflects Toast’s "premium" valuation relative to peers, which reflects its favorable positioning and growth outlook in the small business restaurant space, contends the firm. It views competition and the uncertain macro environment as risks to the company’s outlook.