Toast’s Development May Take A Hit As Macro Uncertainties Weigh, Analyst Says

  • Baird analyst David Koning downgraded Toast Inc (NYSE: TOSTfrom Outperform to Neutral and lowered the worth goal from $26 to $24.

  • The analyst appreciated the Toast theme, together with vital share positive factors throughout the restaurant vertical and strong progress in income per location.

  • TOST has ~74k places inside Koning’s estimated ~700k US places that aren’t a part of massive chains of >1k places.

  • After a interval of stable restaurant progress, the analyst considers it attainable {that a} macro slowdown may affect restaurant progress.

  • Nevertheless, Koning seen the danger and reward as fairly balanced, contemplating slowing room to penetrate TAM, slowing macro and restaurant progress, share creep, and valuation.

  • The analyst anticipated Toast’s diluted share depend to achieve 600 million as soon as it reached profitability.

  • Toast reported third-quarter FY22 income progress of 55% year-on-year to $752 million, beating the consensus of $721.5 million.

  • ARR for Q3 was $868 million, up 60% Y/Y.

  • Gross Cost Quantity (GPV) elevated 53% Y/Y to $25.2 billion.

  • EPS lack of $(0.19) missed the consensus lack of $(0.09).

  • Toast raised its FY22 income to $2.692 billion – $2.722 billion (up from $2.620 billion – $2.660 billion), above the consensus of $2.66 billion.

  • Worth Motion: TOST shares traded decrease by 3.11% at $21.65 on the final test Tuesday.

Newest Scores for TOST

Date

Agency

Motion

From

To

Feb 2022

Keybanc

Maintains

Obese

Feb 2022

Morgan Stanley

Maintains

Obese

Feb 2022

Needham

Maintains

Purchase

View More Analyst Ratings for TOST

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