Bank of America Securities analyst Jason Kupferberg has reiterated their neutral stance on TOST stock, giving a Hold rating today.
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Jason Kupferberg’s rating is based on several critical observations about Toast Inc’s financial performance and future projections. The company showcased strong fourth-quarter results, with significant beats in both recurring gross profit and adjusted EBITDA. However, the guidance for 2025’s recurring gross profit growth was slightly below market expectations, which might suggest a conservative outlook from management despite their strong track record.
Another factor influencing the Hold rating is the potential pressure on SaaS average revenue per user due to increasing competition in the market. Additionally, while the company’s implied 2025 adjusted EBITDA margin expansion is promising, there are concerns about valuation and the expected deceleration in top-line growth in the first quarter, attributed to external factors like weather events. Overall, these elements combined lead to a balanced perspective, justifying the Hold rating on Toast Inc’s stock.
According to TipRanks, Kupferberg is a 2-star analyst with an average return of 0.2% and a 55.06% success rate. Kupferberg covers the Technology sector, focusing on stocks such as Shift4 Payments, Fiserv, and Fidelity National Info.
In another report released today, KBW also maintained a Hold rating on the stock with a $42.00 price target.