Skip NavigationMarketsBusinessInvestingTechPoliticsVideoWatchlistInvesting Club
PRO
LivestreamMenuToast is well positioned to bounce back following its first-half underperformance this year, giving investors the opportunity to buy the stock at cheap valuations, according to Goldman Sachs. The investment bank upgraded the restaurant payments app to buy from neutral, hiking its 12-month price target to $36 from $30, suggesting 26% upside from Wednesday’s close. Toast is down more than 19% over the past six months, while the S & P 500 is ahead 7.4%, according to FactSet data. “TOST is well positioned to outperform from here as a result of its best-in-class product offering and the recent launch of AI-enabled marketing services (‘Toast IQ Grow’), which we believe could be a potential accelerant to [software-as-a-service average revenue per user],” Goldman analyst Will Nance said Thursday in a note to clients. “On the market share side, we see continued runway to sustain share gains, driven by [total addressable market] expansion activity into retail, international and enterprise (we are particularly positive on the Retail momentum,” Nance said. Shares of Toast have fallen 20% since the start of the year as the Boston-based company faces profit margin threats from rising hardware and memory prices as well as competition in payments services for small- and medium-sized businesses. Those struggles also come amid a broader pullback in payments stocks as investors rotate into higher-growth categories such as artificial intelligence. PayPal is down 24% in 2026, and Fiserv is off by 25%. TOST YTD mountain Shares have fallen almost 20% in 2026. Despite that weakness, “the fundamental picture appears relatively strong with consumer spending remaining resilient and accelerating throughout the quarter, both including and excluding gas-related spending,” Nance wrote. Those trends should serve as tailwinds that drive value to shares of Toast over the medium term, according to the analyst. Goldman Sachs’ call matches the consensus, with 20 of 32 analysts covering Toast rating it a buy or strong buy.Read More
About The Author
