Evercore ISI Upgrades Toast to Outperform with $40 Price Target
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 20 2026
0mins
Source: CNBC
- Attractive Risk-Reward: Evercore ISI upgraded Toast's rating from in line to outperform, with analyst Adam Frisch setting a $40 price target that implies a 19% upside from Friday's close, indicating a compelling investment opportunity.
- Stock Pullback Opportunity: Toast's stock has declined 12% over the past 12 months, presenting investors with an attractive buying opportunity, particularly in the current market environment.
- Valuation Improvement Outlook: The analyst noted that Toast's EV/EBITDA has dropped 44% from August highs, reflecting market caution regarding near-term U.S. user additions and recurring gross profit growth rates, with potential for modest multiple expansion ahead.
- Long-Term Growth Prospects: Evercore ISI believes that 2026 will be a transition year for Toast, with growth expected to reaccelerate in 2027 and beyond, while also anticipating improvements in average revenue per user and EBITDA growth in the coming years.
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Analyst Views on TOST
Wall Street analysts forecast TOST stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TOST is 47.00 USD with a low forecast of 36.00 USD and a high forecast of 60.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
21 Analyst Rating
13 Buy
8 Hold
0 Sell
Moderate Buy
Current: 31.090
Low
36.00
Averages
47.00
High
60.00
Current: 31.090
Low
36.00
Averages
47.00
High
60.00
About TOST
Toast, Inc. is a cloud-based, all-in-one digital technology platform purpose-built for the entire restaurant community. It provides a platform of software-as-a-service (SaaS) products and financial technology solutions, including integrated payment processing, restaurant-grade hardware, and a broad ecosystem of third-party partners. It serves as the restaurant operating system, connecting front of house and back of house operations across service models including dine-in, takeout, delivery, catering, and retail. Its products include point-of-sale (POS) & restaurant operations, marketing, online ordering & delivery, team management, vendor management, retail, and financial technology solutions. Its in-store POS and restaurant operations offerings are built to help reduce time to take an order, optimize operations, and handle payments. Its marketing products provide integrated solutions to deliver targeted email and SMS campaigns, build loyalty programs, offer gift cards, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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