Jefferies sees better financials pushing Toast shares into mid-$50s

Jefferies says Toast (TOST) has won over “many skeptics” over the past two years by proving it can grow durably while also delivering material leverage. Jefferies, however, is still asked often whether the company can sustain 25%-plus growth beyond 2025. “Very modest” inroads in enterprise, international, and retail will allow Toast to deliver 25%-plus recurring gross profit growth through 2027, the analyst tells investors in a research note. Jefferies thinks a combination of better financials and a slightly higher multiple would push the stock into the mid-$50s.