Toast (NYSE:TOST) Given New $40.00 Price Target at BMO Capital Markets

Key Points

• BMO Capital Markets raised Toast’s price target to $40 from $35 while maintaining an “outperform” rating, implying approximately 17.8% upside from the reported $33.97 share price.
• Analyst sentiment remains broadly positive: 18 analysts rate Toast a Buy and eight rate it Hold, resulting in a “Moderate Buy” consensus and an average price target of $38.35.
• Toast reported quarterly revenue of $1.91 billion, up 23.1% year over year and above expectations, though reported EPS of $0.26 missed the $0.32 consensus estimate. Company executives also sold shares to cover tax obligations, while institutions own 82.91% of the stock.

Toast (NYSE:TOST - Get Free Report) had its target price increased by equities research analysts at BMO Capital Markets from $35.00 to $40.00 in a research note issued to investors on Wednesday,Benzinga reports. The firm currently has an "outperform" rating on the stock. BMO Capital Markets' target price would suggest a potential upside of 17.76% from the company's current price.

Several other equities research analysts have also issued reports on TOST. Mizuho lowered their price target on shares of Toast from $45.00 to $38.00 and set an "outperform" rating on the stock in a research note on Tuesday, May 12th. Needham & Company LLC increased their price objective on shares of Toast from $35.00 to $45.00 and gave the stock a "buy" rating in a research note on Wednesday. Wells Fargo & Company restated an "overweight" rating on shares of Toast in a report on Wednesday. DA Davidson upped their target price on Toast from $28.00 to $30.00 and gave the stock a "neutral" rating in a report on Wednesday, July 29th. Finally, Wall Street Zen cut Toast from a "buy" rating to a "hold" rating in a research report on Saturday, July 4th. Eighteen investment analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company's stock. According to MarketBeat, Toast presently has an average rating of "Moderate Buy" and a consensus price target of $38.35.

Toast Stock Up 3.6%

Shares of TOST opened at $33.97 on Wednesday. Toast has a twelve month low of $22.26 and a twelve month high of $49.66. The stock has a market capitalization of $17.53 billion, a P/E ratio of 52.26 and a beta of 1.72. The company has a 50 day moving average of $27.87 and a 200-day moving average of $27.83.

Toast (NYSE:TOST - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The company reported $0.26 EPS for the quarter, missing analysts' consensus estimates of $0.32 by ($0.06). Toast had a return on equity of 20.86% and a net margin of 6.39%.The business had revenue of $1.91 billion during the quarter, compared to the consensus estimate of $1.87 billion. During the same period in the prior year, the firm earned $0.13 EPS. The business's revenue for the quarter was up 23.1% compared to the same quarter last year. On average, sell-side analysts anticipate that Toast will post 0.97 earnings per share for the current fiscal year.

Insider Transactions at Toast

In other news, CEO Aman Narang sold 14,365 shares of the company's stock in a transaction dated Thursday, July 2nd. The shares were sold at an average price of $28.85, for a total value of $414,430.25. Following the sale, the chief executive officer directly owned 70,451 shares of the company's stock, valued at approximately $2,032,511.35. This represents a 16.94% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Elena Gomez sold 11,605 shares of Toast stock in a transaction dated Thursday, July 2nd. The stock was sold at an average price of $28.85, for a total value of $334,804.25. Following the transaction, the chief financial officer owned 185,150 shares of the company's stock, valued at $5,341,577.50. The trade was a 5.90% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have sold 173,545 shares of company stock valued at $4,748,501. 10.03% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Capelight Capital Asset Management LP acquired a new stake in shares of Toast during the 4th quarter worth about $2,131,000. Robeco Institutional Asset Management B.V. raised its holdings in Toast by 6.3% in the 4th quarter. Robeco Institutional Asset Management B.V. now owns 972,230 shares of the company's stock valued at $34,524,000 after acquiring an additional 57,512 shares during the period. Lecap Asset Management Ltd. lifted its position in Toast by 206.7% during the fourth quarter. Lecap Asset Management Ltd. now owns 59,123 shares of the company's stock worth $2,099,000 after acquiring an additional 39,847 shares during the last quarter. Campbell Capital Management Inc. acquired a new stake in Toast during the fourth quarter worth approximately $9,812,000. Finally, Zurcher Kantonalbank Zurich Cantonalbank boosted its holdings in shares of Toast by 11.5% during the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 514,992 shares of the company's stock worth $18,287,000 after acquiring an additional 52,959 shares during the period. 82.91% of the stock is currently owned by institutional investors.

Toast News Roundup

Here are the key news stories impacting Toast this week:

• Positive Sentiment: Revenue exceeded expectations. Toast reported Q2 revenue of $1.91 billion, above the $1.87 billion analyst consensus and 23.1% higher than a year earlier. The company also added a record 9,500 net locations, indicating continued demand for its restaurant technology platform. Toast Announces Second Quarter 2026 Financial Results
• Positive Sentiment: Recurring revenue and operating leverage improved. Management said recurring gross profit streams grew 28% and GAAP operating-income margins expanded to 26%. These trends support the view that Toast is scaling beyond its core point-of-sale business and becoming more profitable. Toast Q2 2026 Earnings Call Transcript
• Positive Sentiment: Analyst sentiment remains supportive. Toast carries a “Moderate Buy” consensus rating, with an average price target of $37.27. Recent analysts have raised targets, including Truist Financial, which increased its target to $33 while maintaining a buy rating.
• Neutral Sentiment: AI, subscription and fintech adoption are key growth drivers. Pre-earnings estimates anticipated approximately 20.8% revenue growth from these businesses, but investors remain focused on whether Toast can sustain growth while controlling costs. Toast to Report Q2 Earnings
• Negative Sentiment: Profitability comparisons were mixed. One report listed EPS at $0.26, below the $0.32 consensus, while Zacks reported adjusted EPS of $0.34, above estimates. The conflicting figures may cause investors to examine the precise earnings measure and the quality of Toast’s profit growth. Toast Q2 Earnings and Revenues Top Estimates
• Negative Sentiment: The chief revenue officer sold shares. Jonathan Vassil sold 14,280 shares worth approximately $469,700, reducing his position by 16.95%. Because the sale occurred under a pre-arranged Rule 10b5-1 plan, it is a limited bearish signal. SEC insider-trading filing

About Toast

Toast, Inc NYSE: TOST is a technology company that builds a cloud-based platform for restaurants and other foodservice businesses. Headquartered in Boston, Massachusetts, Toast offers integrated point-of-sale (POS) systems and a suite of software and hardware designed to streamline front-of-house and back-of-house operations. The company went public in 2021 and has positioned itself as a vertically integrated provider for the restaurant industry.

Toast's product portfolio includes touchscreen POS terminals and handheld order-and-pay devices, kitchen display systems, and peripherals tailored for high-volume foodservice environments.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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