Toast: Jefferies Raises Buy Rating to $54, Ups PT from $50

Toast: Jefferies Raises Buy Rating to $54, Ups PT from $50

Jefferies, a leading financial research firm, has upgraded its rating for Toast Inc. (NYSE: TOST) to "Buy" and increased its price target to $54 from $50. This decision comes on the heels of the company's strong first-quarter results, which exceeded market expectations [2].

Toast Inc. reported a notable 26.72% revenue growth over the past year, with its stock hitting a new 52-week high of $46.98, reflecting a significant upward trajectory [2]. The company's valuation has reached $26.09 billion, underscoring investor confidence in its robust performance and growth prospects [2].

Several analysts have also raised their price targets for Toast Inc. BMO Capital Markets raised its target to $45, Piper Sandler to $37, and Keefe, Bruyette & Woods to $42, citing strong execution, increased full-year 2025 guidance, and success in securing enterprise clients [2].

Jefferies analysts noted that Toast Inc.'s strong annual recurring revenue growth and expansion into Enterprise locations are key drivers behind the positive sentiment surrounding the company's stock [2]. The firm's ability to navigate market conditions effectively and secure enterprise-level contracts has been highlighted by multiple analysts [2].

While the stock's high P/E ratio of 173.8x indicates a premium valuation, the company's strong financial health and positive outlook have led Jefferies to maintain a "Buy" rating with an increased price target [2].

References:
[1] https://finance.yahoo.com/news/jefferies-raises-cogent-biosciences-cogt-162331043.html
[2] https://ca.investing.com/news/company-news/toast-inc-stock-hits-52week-high-at-4698-usd-93CH-4106380