Toast Inc (NYSE:TOST) was upgraded to Buy from Neutral at UBS on Wednesday, with analysts raising the price target to $30 from $25 per share.
The analysts told investors in a note that they see improved potential for quarterly net new location adds and margin expansion for the company.
In addition, "Toast remains well-positioned to capture the restaurant industry's ongoing shift from legacy technology to omnichannel, integrated software solutions," they wrote.
"While the competitive environment remains intense and macro uncertainty looms, Toast continues to prove itself as a top provider, evidenced by the recent acceleration of location net adds," the analysts added.
They also noted that they see limited risk from the appointment of Aman Narang as Toast's new CEO, "given his strategic leadership roles at Toast."
In a note from BofA on Wednesday, analysts also said they expect the transition to be smooth.
"While we don’t believe this transition was broadly anticipated, it should be quite smooth," the analysts, who has a Buy rating and a $27 price target on the stock, said. "Overall, we would not expect the new CEO to make significant changes to Toast’s strategy, which he was heavily involved in architecting."