Core Insights - Toast (NYSE: TOST) and Block (NYSE: SQ) both reported Q3 2025 earnings that exceeded revenue estimates but fell short on earnings per share (EPS) [1] Company Performance - Toast reported Q3 2025 earnings that beat revenue estimates [1] - Block also reported Q3 2025 earnings that surpassed revenue expectations [1] - Both companies missed EPS targets for the quarter [1]

Group 1 - The core viewpoint of the article indicates that JPMorgan has downgraded the ratings of FISV and PYPL from "Overweight" to "Neutral," suggesting that it is too late to sell and too early to buy [1] - JPMorgan's report highlights that the payment sector is experiencing its worst performance in 15 years, excluding the COVID-19 pandemic, due to slowing market growth and concerns over commoditization [1] - The year 2026 is seen as critical for both FISV and PYPL, requiring them to demonstrate execution capabilities and invest in new initiatives and technologies, leading to both potential upsides and risks of underperformance [1] Group 2 - JPMorgan upgraded the rating of TOST from "Neutral" to "Overweight," focusing on companies with pricing power, strong margins, and order growth as it looks ahead to 2026 [1] - Despite a 6% decline in TOST's stock price since 2025, earnings expectations have been raised by 27%, and the composite metric of "growth + profitability" for 2026 has been established [1] - If credit card interchange fee regulations are implemented, TOST may have additional upside potential, which contributed to the rating upgrade [1]

Core Viewpoint - J.P. Morgan recommends shares of Visa and Toast, highlighting their quality businesses despite struggling for momentum in 2025 [1] Company Analysis - Visa is identified as a strong business with potential for growth, yet it has faced challenges in gaining momentum in the current year [1] - Toast, similarly, is recognized for its quality operations but has also struggled to achieve significant progress in 2025 [1]

Airline Industry - Airline stocks are experiencing a resurgence due to healthy revenues and increased demand for premium travel, with Delta Airlines (NYSE: DAL) rising from $65 to $67.49 following a Citi upgrade to a buy rating with a $77 price target [1] - American Airlines (NASDAQ: AAL) received a buy rating from Citi with a $19 price target, while United Airlines (NASDAQ: UAL) was also upgraded with a $132 price target [1] Technology Sector - Goldman Sachs reiterated its buy rating on Salesforce (NYSE: CRM) after the company reported earnings, setting a price target of $385, with EPS of $3.25 beating estimates by 39 cents and revenue of $10.26 billion reflecting an 8.7% year-over-year increase [2] - Analysts from Wedbush, Evercore, Morgan Stanley, and Wells Fargo have also provided positive ratings on Salesforce, with price targets ranging from $265 to $405 [3] Restaurant Technology - JPMorgan has given Toast (NYSE: TOST) an overweight rating with a price target of $43, highlighting its potential as a disruptive player in the restaurant industry, which is in need of IT modernization [4] - Toast is noted as one of the fastest growers in its competitive group from FY24-28E, with improving profitability justifying a high valuation and supporting the overweight rating [5]

Core Viewpoint - The article summarizes key research rating adjustments from Wall Street that are likely to influence market trends, highlighting companies with upgraded, downgraded, and newly initiated ratings [1][6]. Upgraded Ratings - Toll Brothers (TOL): JPMorgan upgraded the rating from "Neutral" to "Overweight," raising the target price from $138 to $161, citing significantly higher gross and operating margins compared to industry averages [5]. - Toast (TOST): JPMorgan upgraded the rating from "Neutral" to "Overweight," maintaining the target price at $43, with expectations of improved performance if regulatory policies on transaction fees are implemented [5]. - Accelerant (ARX): Citizens JMP upgraded the rating from "Market Perform" to "Outperform," setting a target price of $20, indicating that market concerns over its related party business have been overstated [5]. - UMH Properties (UMH): Colliers upgraded the rating from "Neutral" to "Buy," increasing the target price from $16 to $17, highlighting the resilience of the manufactured housing sector [5]. - Descartes Systems (DSGX): Raymond James upgraded the rating from "Market Perform" to "Outperform," setting a target price of $118, noting that the current price-to-EBITDA ratio is near a 10-year low, positioning it well for a market recovery [5]. Downgraded Ratings - PayPal (PYPL): JPMorgan downgraded the rating from "Overweight" to "Neutral," lowering the target price from $85 to $70, indicating that 2026 will be a critical year for execution and investment [5]. - Sociedad Química y Minera (SQM): Goldman Sachs downgraded the rating from "Buy" to "Neutral," raising the target price from $45 to $63, as the stock has risen 80% this year, exceeding fundamental support [5]. - Lennar (LEN): JPMorgan downgraded the rating from "Neutral" to "Underweight," lowering the target price from $118 to $115, maintaining a cautious stance on the residential builders sector for 2026 [5]. - Halozyme (HALO): Goldman Sachs downgraded the rating from "Neutral" to "Sell," setting a target price of $56, expressing concerns over the ambitious revenue targets set for 2041 [5]. - Fidelity National Information Services (FISV): JPMorgan downgraded the rating from "Overweight" to "Neutral," maintaining the target price at $85, indicating that 2026 will be a year requiring proof of execution [5]. Newly Initiated Ratings - United Airlines (UAL): Citigroup initiated coverage with a "Buy" rating and a target price of $132, citing a positive outlook for the airline industry [10]. - General Electric Aviation (GE): Susquehanna initiated coverage with a "Positive" rating and a target price of $350, noting its dominant position in the commercial aviation engine market [10][12]. - Hershey (HSY): Jefferies resumed coverage with a "Hold" rating and a target price of $181, acknowledging the company's strategies to manage cocoa cost pressures while noting high current valuations [10][13]. - Monday.com (MNDY): Guggenheim initiated coverage with a "Buy" rating and a target price of $250, indicating a potential 64% upside from current levels [10][13]. - Cava Group (CAVA): Truist initiated coverage with a "Buy" rating and a target price of $66, highlighting its leadership in the Mediterranean fast-casual dining sector [10][13].

Group 1 - Toast Inc (NYSE: TOST) has been upgraded by J.P. Morgan Securities to "overweight" from "neutral," driven by expectations of strong growth in the payments and fintech sectors, highlighting the company's pricing power and strong margins [1] - Currently, 12 out of 29 analysts rate Toast stock as a "hold," indicating potential for further upgrades that could provide additional support for the stock [2] - Toast's stock is trading below its year-to-date breakeven level and has decreased by 17.9% over the past 12 months, with recent gains testing the shares' 50-day moving average [2] Group 2 - The popularity of call options for Toast has increased, as indicated by a Schaeffer's put/call open interest ratio (SOIR) of 0.52, which is in the 16th percentile of its annual range [3] - Options for Toast are currently affordably priced, with a Schaeffer's Volatility Index (SVI) of 46%, which is higher than just 8% of all readings from the past year [3]

Group 1 - The article does not provide any specific content related to a company or industry [1]

Summary of Toast's Conference Call Company Overview - **Company**: Toast - **Industry**: Restaurant technology and payment solutions Key Highlights - **2025 Performance**: - Recurring gross profit is projected to grow by **32%** with a **33% margin** [3][4] - Achieved a significant milestone of crossing **$2 billion** in revenue [4] - Adjusted EBITDA margins expanded by over **600 basis points** [3] - **Market Expansion**: - Focus on penetrating core Total Addressable Market (TAM) and expanding into new TAMs, including enterprise, international, and food and beverage retail [5][7] - Successful launch in Australia and significant deals won [5][6] - **Emerging Businesses**: - Achieved over **$100 million** in Annual Recurring Revenue (ARR) from emerging businesses [5] - Different Average Revenue Per User (ARPU) profiles expected across new segments, with gradual expansion anticipated [10][11] Financial Metrics - **Net Location Adds**: - U.S. SMB net adds expected to remain stable in 2025 and 2026, despite potential tapering as the base grows [12][13] - Core business still has significant growth runway [14] - **SaaS ARR per Location**: - Expected to remain in the mid-single digits, with core ARPU growing faster than total ARPU [19][20] - **Gross Payment Volume (GPV)**: - Trends remain stable, with gradual impacts from new segments [21] - **Net Payments Take Rate**: - Increased year-over-year due to cost optimization, targeted pricing, and innovation in digital products [22][24] 2026 Outlook - **Growth Projections**: - Recurring gross profit growth expected to exceed **20%** with margins flat to slightly up [26][27] - Investments focused on both core and new TAMs, with a disciplined capital approach [30][32] - **Sales and Rep Capacity**: - Increased investment in sales rep capacity to drive growth in both core and emerging businesses [33][36] Product Innovations - **Toast IQ**: - New AI-driven product designed to assist restaurant operators with insights and performance management [41][42] - **Partnerships**: - Strategic partnerships with American Express and Uber aimed at enhancing customer experience and integration [44][46] Competitive Landscape - **Market Share Goals**: - Aim to double market share in the core business, with strong execution and win rates observed [15][17] - **Enterprise Payments Attach**: - Most enterprise customers are adopting payments as part of the overall platform, with ongoing opportunities for growth [47][48] Miscellaneous - **Visa/Mastercard Settlement**: - Potential long-term impact on interchange rates, but not expected to be material for Toast [51][52] This summary encapsulates the key points discussed during the conference call, highlighting Toast's performance, strategic initiatives, and outlook for the future.

Group 1: Market Overview - The AI sector is experiencing renewed interest following strong earnings from NVIDIA and Google's Gemini 3, which has eased investor concerns [1] - Despite two positive trading days, the market remains volatile, with large trading ranges indicating a lack of confidence [1][2] Group 2: Performance of Major Companies - The Magnificent 7, including Amazon (AMZN) and Meta (META), are facing challenges as 2025 approaches, with gains increasingly concentrated among AI-focused companies [2] - Bank stocks like JPMorgan Chase, Goldman Sachs, and Bank of America have shown significant gains in 2025, but underlying issues exist within the sector [3] Group 3: Fintech Sector Challenges - Fintech companies are struggling to keep pace with traditional banks, with many experiencing stock declines in the latter half of the year [4] - PayPal Holdings Inc. has seen a dramatic decline in stock value, dropping from $308 to current levels, despite maintaining a $56 billion market cap and over $32 billion in annual sales [5][7] - Toast Inc. has lost momentum after reaching a high of $45, now trading at 85 times forward earnings, raising valuation concerns [9][11] Group 4: Cryptocurrency and Related Companies - Coinbase Global Inc. is facing challenges as it closely tracks Bitcoin's price, with a more than 25% decline in the last month amid falling crypto prices [12][14] - Upstart Holdings Inc. has struggled despite its AI-driven credit assessment platform, with shares down nearly 90% since the Fed's rate hikes, and currently trading at over 170 times earnings [15][17] Group 5: E-commerce and BNPL Services - Affirm Holdings has seen its stock triple since the end of 2023, driven by the popularity of its Buy Now, Pay Later services, but recent earnings reports have shown significant misses [18][19]

Group 1 - The Annual General Meeting (AGM) of Pro Medicus Limited is being held in Hawthorn, Melbourne, with both physical and online attendance options available [2][3][4] - The meeting is chaired by Peter Kempen, who acknowledges the traditional owners of the land, the Wurundjeri people of the Kulin Nation [2] - Several directors are present at the meeting, including Non-Executive Directors and the CEO, indicating a strong leadership presence [5]