Truist initiates Toast (TOST) with a Buy Rating and $48 Price Target

On June 2, Truist Securities analyst Matthew Coad initiated coverage on Toast Inc. (NYSE:TOST) with a Buy rating and a $48 price target, highlighting the company’s long-term prospects in the restaurant technology space.

According to Coad, Toast’s strength lies in its product suite and its go-to-market strategy. He believes the company offers a leading platform for restaurant point-of-sale (POS) solutions, supported by a unique distribution approach. This combination, in the analyst’s view, gives Toast the potential to become a dominant player, or what he refers to as a “category killer”, in the restaurant POS software segment.

A woman using a tablet to navigate the cloud-based bill payment technology.

In the first quarter of 2025, Toast added approximately 6,000 new locations, reaching a total customer base of nearly 140,000, representing a 25% year-over-year increase. This expansion corroborates the company’s ability to attract and retain customers in a competitive market.

That said, the analyst acknowledges some near-term concerns that could weigh on investor sentiment. Toast’s exposure to small and medium-sized businesses (SMBs) and sectors with discretionary spending could result in volatility, especially in a more cautious economic environment.

Toast Inc. is a Boston-based technology company specializing in cloud-based restaurant management solutions. It offers an all-in-one platform that integrates point-of-sale (POS) systems, payment processing, digital ordering, delivery management, marketing, loyalty programs, and team management tools.

While we acknowledge the potential of TOST as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TOST and that has 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None.