Toast: Sentiment Is Broken, But Fundamentals Aren’t; $60 Still In Play
I reaffirm my $60 price target for Toast by summer 2026. My edge is patience — I let time do the work while the market eventually rewards Toast’s operating leverage and financial strength.
Investment Thesis
Toast (TOST) is an operating system for restaurants, from payments solutions to back-house operations.
The reason why I’m very bullish on Toast is that the business holds no debt, and around 7% of its market cap is made up of cash.
Plus, the business is growing at more than 20% y/y, while its priced at 35x forward free cash flow.
This puts the stock on an adjusted PEG ratio of 1.8x. This is a bargain, and as such, I reaffirm my price target of $60 per share by summer 2026.
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