Toast Inc (NYSE: TOST) has already gained 35% over the past two months but a Goldman Sachs analyst is convinced it’s not done pleasing its shareholders just yet.
Toast stock could climb another 25%William Nance upgraded the payments company for restaurants this morning to “buy”. His $24 price objective suggests another 25% upside from here.
The analyst turned bullish on Toast stock because “the market is not accounting for what we expect to be materially better profitability trends in 2024”.
Nance is convinced the New York listed firm will reach GAAP profitability next year assuming conservative revenue growth and a cap on increase in expenses at about 10%.
Note that Toast stock had printed a high of nearly $27 in July of 2023.
Watch here: https://www.youtube.com/embed/ApQpHWlpf2I?feature=oembedWhy else is he bullish on Toast stock?William Nance expects stronger-than-expected profitability to help offset the weakness in average revenue per user (ARPU).
The Goldman Sachs analyst recommends owning Toast stock because it’s trading at a discount to its peers in the software space. His research note also reads:
$TOST will reach higher levels of market share in its core SMB market than most investors appreciate. Toast’s best-in-class software will continue to outpace competitors for new restaurant wins.
Continued addition of locations will help the cloud company in the near-term as well, Nance concluded. Toast is expected to lose 11 cents a share in its current financial quarter versus 19 cents per share a year ago. It will report its quarterly results in mid-February.
3 Reasons to Buy Toast Stock Like There's No Tomorrow https://t.co/K70hviAr97 pic.twitter.com/YWa1ZovOTU
— Jake P. Noch (@Jake_P_Noch) January 7, 2024The post Toast stock is trading at a discount: Goldman Sachs appeared first on Invezz
