Toast Analyst No Longer Bullish Despite Payments Stock Being Among 'Best Share Gainers'

Shares of Toast Inc (TOST) added more than 40% in November, after the company reported strong third-quarter results.

Although the Boston-based company is among the "best share gainers in the payments space," its stock has risen more than 135% year to date, according to Goldman Sachs.

Analyst Will Nance downgraded the rating for Toast from Buy to Neutral, while raising the price target to $45.

The Thesis: The inflection in operating leverage has played out, with the company significantly curtailing costs into 2024, Nance said in the downgrade note.

Check out other analyst stock ratings.

After the rally this year, the stock already reflects the significant upside that was expected from the move to a software-based valuation framework, he added.

Business confidence is improving in the wake of the November Presidential elections, the analyst stated. Against this backdrop, market pricing "has become a key theme in 2025," and Toast seems among the well positioned companies in terms of revenue mix and exposure to SMBs (small and medium businesses), he further wrote.

Price Action: Shares of Toast declined by 2.66% to $42.38?in premarket trading on Monday.

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