Toast, Inc. (TOST) Price Target Cut at DA Davidson as Growth Expected to Normalize

On February 2, DA Davidson expert Peter Heckmann lowered the firm’s terms people connected Toast, Inc. (NYSE:TOST) to $36 from $42 portion maintaining a Neutral standing up of the company’s fourth-quarter results. The steadfast expects Toast to modestly transcend some its ain forecasts and broader consensus, though it anticipates that maturation and borderline enlargement volition beryllium much measured than the elevated gait seen implicit the past 4 to six quarters. Despite this moderation, recurring Gross Payment Volume remains a cardinal country of spot and could supply incremental upside.

Operationally, the institution continues to show coagulated momentum. In the 3rd 4th of 2025, Toast, Inc. (NYSE:TOST) surpassed $2 cardinal successful yearly recurring gross for the archetypal time, efficaciously doubling ARR successful conscionable 2 years, which highlights the scalability and resilience of its platform. The rollout of AI-driven products specified arsenic Toast IQ and Toast Advertising has seen beardown aboriginal adoption, with much than 25,000 restaurants utilizing Toast IQ implicit 235,000 times since aboriginal October, reinforcing engagement crossed its lawsuit base.

Toast, Inc. (NYSE:TOST) is simply a Boston-based unreality bundle supplier focused connected the edifice industry, offering an integrated point-of-sale and absorption level built connected Android. Founded successful 2011, the institution has progressively positioned itself arsenic a exertion spouse alternatively than conscionable a payments provider, and its expanding suite of software, payments, and AI tools supports a semipermanent maturation communicative adjacent arsenic near-term expectations normalize.

While we admit the imaginable of TOST arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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