Toast price target lowered to $35 from $60 at Needham

Needham lowered the firm’s price target on Toast (TOST) to $35 from $60 and keeps a Buy rating on the shares. The company posted Q4 results above expectations, driven by stronger locations adds, ARPU growth, and operating leverage, the analyst tells investors in a research note. The management also expects higher net location adds in FY26 than in FY25, with increasing contribution from its new market segments, the firm added, noting however that its reduced price target reflects a recent multiple compression across software and payments.