Rothschild downgrades Toast on risk from DoorDash U.S. rollout

Rothschild & Co Redburn downgraded Toast (TOST) to Neutral from Buy with a $35 price target. The firm sees the company’s growth being at risk from DoorDash’s (DASH) planned U.S. rollout of in-store restaurant point-of-sale technology. For the first time since launching coverage, Rothschild does not expect Toast’s locations to accelerate meaningfully over the next three years, with a sharp deceleration in core U.S. additions beginning in 2027, the analyst tells investors in a research note. The firm forecasts DoorDash to scale from 0% to 20% of U.S. restaurant locations by 2035, and it believes this expansion could pressure Toast’s win rates. Shares of Toast are down 1% to $23.89 in premarket trading.