Toast price target lowered to $40 from $50 at UBS

UBS lowered the firm’s price target on Toast (TOST) to $40 from $50 and keeps a Buy rating on the shares. Toast modestly raised its FY26 guidance, with roughly 8,000 locations beating expectations and SaaS annual recurring revenue per location projected to grow mid-single digits, reflecting strong back-book upsell and pricing, the analyst tells investors in a research note. Growth markets — International, F&B Retail, and Enterprise — are expanding faster than the original SMB restaurant segment, supporting continued revenue growth and future EBITDA potential, the analyst says.