Toast has experienced a significant decline of over 19% in its stock price over the past six months, while the S&P 500 has gained 7.4%. Goldman Sachs analyst Will Nance believes that Toast is well-positioned for a rebound due to its strong product offerings and the recent introduction of AI-enabled marketing services, which could enhance its revenue per user.
The firm raised its 12-month price target for Toast from $30 to $36, indicating a potential upside of 26% from its recent closing price. Despite facing challenges such as rising hardware costs and increased competition in the payments sector, Nance notes that consumer spending remains robust, which could support Toast's recovery.
The consensus among analysts is positive, with 20 out of 32 recommending the stock as a buy or strong buy, suggesting confidence in its future performance