Toast initiated with an Outperform at Evercore ISI

Evercore ISI analyst Sheriq Sumar initiated coverage of Toast with an Outperform rating and $32 price target. The firm views Toast as one of the leading small-to-midsize business restaurant management and payments platform providers and believes Toast’s exclusive focus on addressing the pain points of managing a restaurant positions them well to compete against both large legacy and newer smaller platforms. The firm believes Toast’s highly scalable platform will drive 30 points of core adjusted EBITDA margin expansion from 2023-2026 and notes that its 2024-26 adjusted EBITDA estimates stands 31%, 40% and 39% ahead of the Street, respectively.