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Investing.com - Jefferies has lowered its price target on Toast Inc. (NYSE:TOST) to $45.00 from $54.00 while maintaining a Buy rating on the restaurant technology company’s stock. This target remains well within the broader analyst range of $36-$60, with the stock currently trading at $35.64.
The price target reduction comes despite what Jefferies described as a "stellar" third quarter performance, where Toast’s recurring gross profit exceeded expectations by 6% and EBITDA beat forecasts by 15%.
Toast demonstrated strong take-rate expansion, increasing 4 basis points year-over-year, and added 7,500 net new customers during the quarter, according to Jefferies’ analysis. This customer growth has contributed to Toast’s impressive 26% revenue growth over the last twelve months.
For the fourth quarter, Toast provided guidance for recurring gross profit and EBITDA that aligns with consensus expectations, consistent with the company’s recent framework. Management also outlined preliminary 2026 projections, indicating growth of at least 20% with flat to slightly improving margins.
Beyond financial results, Jefferies noted that Toast management addressed key investor concerns regarding customer acquisition and pricing strategies, which the firm believes should strengthen investor confidence in the company. According to InvestingPro data, Toast is currently trading near its Fair Value and has been profitable over the last twelve months, with 9 analysts recently revising earnings estimates upward. For deeper insights including more ProTips and comprehensive metrics, check out the Pro Research Report available for Toast and 1,400+ other US equities.
In other recent news, Toast Inc. reported its third-quarter 2025 earnings, showcasing a mixed financial performance. The company’s earnings per share (EPS) did not meet expectations, recording $0.16 instead of the anticipated $0.24, which represents a 33.33% negative surprise. Despite this, Toast’s revenue exceeded forecasts, reaching $1.63 billion compared to the expected $1.58 billion, resulting in a 3.16% positive surprise. These earnings results have been noted by investors and analysts alike. The company’s financial performance reflects both challenges and achievements in its recent operations. There has been no mention of mergers or significant changes in company strategy in the latest updates. Analysts have not provided any recent upgrades or downgrades for Toast following these earnings results. Investors continue to monitor the company’s performance closely.
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