Toast upgraded to Buy from Neutral at UBS

UBS upgraded Toast to Buy from Neutral with a price target of $30, up from $25. The analyst sees improved potential for quarterly net new location adds and margin expansion. Toast remains well positioned to capture the restaurant industry’s ongoing shift from legacy technology to omni-channel, integrated software solutions, the analyst tells investors in a research note. While the “competitive environment remains intense and macro uncertainty looms,” Toast continues to prove itself as a top provider, evidenced by the recent acceleration of location net adds, says UBS. It believes the company’s investments will drive “industry-leading” 30%-plus gross profit growth over the next two years.