Payment Tech Firm Toast Could Reach profitability In 2025: Goldman Sachs Upgrades Stock
Portfolio Pulse from Shivani Kumaresan
Goldman Sachs analyst Will Nance upgraded Toast Inc (TOST) to Buy with a $24 price target, citing expectations of improved profitability trends in 2024 and potential GAAP profitability in 2025. Despite negative investor sentiment due to weaker ARPU and GPV trends, Nance believes the market underestimates TOST's market share growth in its core SMB market and its software platform's competitive edge. TOST's valuation is also seen as favorable compared to software-oriented peers. TOST shares rose 2.42% to $19.25.
January 10, 2024 | 8:06 pm
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Goldman Sachs upgraded Toast Inc to Buy with a $24 price target, expecting better profitability trends and GAAP profitability by 2025. TOST's valuation is favorable, and its software platform is competitive, which could lead to market share growth.
The upgrade by Goldman Sachs to a Buy rating and the setting of a $24 price target reflect a positive outlook on Toast Inc's future profitability and market share. This endorsement from a reputable analyst is likely to instill confidence in investors and could lead to a short-term increase in the stock price, especially given the current undervaluation compared to peers.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 100