Toast Inc. Poised for Strong Growth: Analyst Recommends ‘Buy’ Amid Robust Performance and Expansion Plans

Toast Inc (TOST – Research Report), the Technology sector company, was revisited by a Wall Street analyst on May 9. Analyst Rufus Hone from BMO Capital maintained a Buy rating on the stock and has a $45.00 price target.

Rufus Hone has given his Buy rating due to a combination of factors that highlight Toast Inc’s strong performance and growth potential. Despite initial concerns about macroeconomic challenges, Toast Inc. exceeded expectations with a broad-based first-quarter performance and subsequently raised its full-year 2025 guidance. The company reported significant growth in annual recurring revenue, recurring gross profit, and EBITDA, driven by stronger financial technology gross profit and improved operational efficiency.
Additionally, Toast Inc. is experiencing healthy trends in its core small and medium-sized business restaurant base, with record location additions expected in the second quarter of 2025. The company’s expansion into new markets is progressing well, with plans to exceed 10,000 locations by the end of 2025. Furthermore, Toast Inc.’s international offerings and product innovations are resonating with customers, contributing to a robust enterprise pipeline. These factors, combined with a strong go-to-market strategy and effective unit economics, support the long-term growth prospects of Toast Inc. in the U.S. restaurant technology and payments market.

Hone covers the Financial sector, focusing on stocks such as Visa, PayPal Holdings, and Western Union. According to TipRanks, Hone has an average return of 10.9% and a 68.80% success rate on recommended stocks.

In another report released on May 9, Mizuho Securities also reiterated a Buy rating on the stock with a $49.00 price target.