Analyst Reiterates Buy on Toast, Citing Strong Q1 Execution, Raised Guidance and Attractive Valuation Upside

William Blair analyst Stephen Sheldon has reiterated their bullish stance on TOST stock, giving a Buy rating today.

Stephen Sheldon has given his Buy rating due to a combination of factors that underscore Toast’s strong fundamentals and attractive valuation. He points to robust first-quarter execution, with double-digit revenue and ARR growth, expanding SaaS and fintech gross profit, and solid adjusted EBITDA that exceeded expectations, all supported by healthy new location additions and improving margins.

Sheldon also emphasizes management’s increased full-year outlook, including higher core gross profit and EBITDA, even after absorbing temporary headwinds from elevated hardware costs and front-loaded inventory. In his view, the current share price already reflects near-term concerns, while the stock trades at compelling multiples of future gross profit and EBITDA, leaving room for meaningful upside as Toast scales and delivers on its long-term growth and profitability targets.

In another report released today, Citi also maintained a Buy rating on the stock with a $36.00 price target.