This Toast Analyst Sees Surge In GLP-1 Drugs & More Spoiling Long Term Growth Prospects
Portfolio Pulse from Lekha Gupta
Mizuho Securities analyst Dan Dolev downgraded Toast Inc (NYSE:TOST) to Neutral from Buy and lowered the price target to $16 from $30. The downgrade is due to the company's muted success in enterprise business, higher reliance on TOST Capital, and potential headwinds from student loan payments leading to declining restaurant spending. The rise of GLP-1 drugs like Ozempic for Americans with Type-2 diabetes and obesity can also curb the company's volumes. The analyst also lowered its FY24 and FY25 gross revenue and adjusted EBITDA estimates.
October 02, 2023 | 6:55 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Toast Inc (TOST) has been downgraded to Neutral from Buy by Mizuho Securities, with a lowered price target of $16 from $30. The company's muted success in enterprise business, higher reliance on TOST Capital, and potential headwinds from student loan payments are cited as reasons.
The downgrade by Mizuho Securities is based on several factors that could negatively impact TOST's performance. These include muted success in enterprise business, higher reliance on TOST Capital, and potential headwinds from student loan payments. Additionally, the rise of GLP-1 drugs like Ozempic could curb the company's volumes. These factors could lead to a decrease in TOST's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100