Toast initiated with a Hold at Loop Capital

As previously reported, Loop Capital initiated coverage of Toast (TOST) with a Hold rating and $26 price target as part of a broader research note on FinTech Payments. The company has strong execution and is a market share winner within the restaurant point-of-sale space, but the issue isn’t execution – rather, it’s the fact that Toast is growing into their long-term payments earnings multiple net of stock based compensation, or SBC, the analyst tells investors in a research note. Loop adds it would become more constructive on the name if the company’s P/E multiple net of SBC fell to the high teens or if Toast illustrated international profitability was improving with accelerated gross profit.