UBS analyst Timothy Chiodo has maintained their bullish stance on TOST stock, giving a Buy rating today.
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Timothy Chiodo has given his Buy rating due to a combination of factors that highlight Toast Inc’s strong market position and growth potential. The company is expected to maintain a robust level of core net additions in the U.S. small and medium-sized business market, driven by its superior product offerings and effective sales team. This confidence is further bolstered by Toast’s ability to expand into additional markets, despite the natural tapering of net additions due to churn.
Moreover, Toast is successfully applying its proven strategies from the U.S. market to emerging markets, including international, enterprise, and retail food and beverage sectors. The company’s focus on enhancing its inventory capabilities and modernizing platforms in these fragmented markets positions it well against legacy competitors. Additionally, Toast’s growth in SaaS ARPU and FinTech net take rate, supported by pricing strategies and cost optimizations, further underscores its potential for continued financial performance and innovation.
In another report released today, J.P. Morgan also upgraded the stock to a Buy with a $43.00 price target.