Analyst Peter Heckmann from D.A. Davidson maintained a Hold rating on Toast Inc (TOST – Research Report) and keeping the price target at $42.00.
Claim 70% Off TipRanks This Holiday Season
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Peter Heckmann has given his Hold rating due to a combination of factors that reflect both opportunities and challenges for Toast Inc. The recent agreement with Dine Brands Global to implement Toast technology at Applebee’s locations is a significant achievement, showcasing Toast’s ability to secure contracts with larger chain restaurants. This move is a positive indicator of potential growth, as it represents the largest chain win by Toast to date.
However, while the Applebee’s deal is a milestone, it does not substantially impact Toast’s existing base of 134,000 locations. The company needs to continue moving up-market to chains with over 500 units to sustain robust growth in the coming years. The expectation of success in signing larger chains is present, but the current financial metrics and market conditions suggest a cautious approach. Thus, Heckmann maintains a Neutral rating with a price target that reflects a balanced view of the company’s future prospects.
Based on the recent corporate insider activity of 134 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TOST in relation to earlier this year.