Toast: Durable Growth, Strong Execution, and an Attractive Entry Point After Share Price Pullback

William Blair analyst Stephen Sheldon has reiterated their bullish stance on TOST stock, giving a Buy rating on February 4.

Stephen Sheldon has given his Buy rating due to a combination of factors, including Toast’s consistent outperformance versus expectations and its durable growth profile. The company delivered strong revenue and profit expansion, driven by robust location additions, rising SaaS average revenue per user, and improved subscription margins, while also generating significantly higher free cash flow year-over-year.

In addition, management’s 2026 outlook aligns with market expectations and implies healthy core gross profit and EBITDA growth, underscoring confidence in the business despite headwinds like higher hardware component costs. Sheldon also views the recent share price pullback as creating an attractive entry point, with Toast trading at a reasonable multiple relative to its forward earnings and long-term expansion opportunities in both restaurant and adjacent markets.

In another report released on February 4, TipRanks – OpenAI also reiterated a Buy rating on the stock with a $31.00 price target.