Josh Baer, an analyst from Morgan Stanley, maintained the Buy rating on Toast Inc (TOST – Research Report). The associated price target was raised to $50.00.
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Josh Baer has given his Buy rating due to a combination of factors that highlight Toast Inc’s strong performance and promising future. The company’s ability to maintain a durable growth trajectory, particularly in expanding its location base, is a key element that Baer believes is underappreciated by the market. With Toast trading at a lower PEG ratio compared to its large-cap software peers, there is significant potential for upward revisions in estimates, supporting a higher price target.
Moreover, Toast’s consistent GAAP profitability over the past year positions it well for potential inclusion in the S&P 500, which could attract more investors. The company’s strong execution and competitive differentiation have led to steady market share gains and rapid growth. Additionally, promising momentum in new growth markets such as Enterprise, International, and Retail suggests that Toast’s best days may still be ahead, further justifying the Buy rating.
According to TipRanks, Baer is a 3-star analyst with an average return of 3.6% and a 51.67% success rate. Baer covers the Technology sector, focusing on stocks such as DigitalOcean Holdings, Coursera, and Udemy Inc.
In another report released today, Mizuho Securities also reiterated a Buy rating on the stock with a $49.00 price target.
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