Toast

TOST

Market cap $21.7B

BOSTON--(BUSINESS WIRE)--The Toast 2025 Voice of the Restaurant Industry Survey.

Toast (TOST) concluded the recent trading session at $36.7, signifying a -1.26% move from its prior day's close.

It would be great if you could buy a stock that always moves higher without any pullbacks along the way. But that's not realistic.

You can make a little money go a long way, as long as you invest in the right growth stocks. The risks are understandably high.

Shares of Toast (TOST 1.25%) slid sharply last month after an analyst note from a Baird analyst on Sept. 22 pointed out that the company had slashed prices on some of its basic restaurant software packages by as much as 58%.

TOST posts 25% revenue growth and $208 million free cash flow in the second quarter, but seasonality raises questions about sustaining momentum.

Toast (TOST) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.

Toast is upgraded to Strong Buy, citing strong revenue growth, expanding TAM, and favorable digital payment trends. TOST's growth is driven by increasing cashless transactions and net new restaurant locations, not just overall industry health. Conservative projections suggest 20% revenue growth by 2028, with attractive free cash flow and EBITDA margins supporting upside potential.

Toast (TOST) closed the most recent trading day at $36.51, moving 1.67% from the previous trading session.

I strongly believe Toast remains a 'buy' with a $55.5 price target, offering 48% upside after a 25% stock pullback since August. The company delivered strong Q2 FY25 results, beating estimates, expanding locations, and accelerating growth in enterprise, retail, and international markets. Despite short-term pricing volatility that appears to have reverted back and macroeconomic risks, Toast raised full-year guidance and continues to diversify revenue and expand its TAM.