Core View - The analyst from Rothschild, Dominic Ball, maintains a sell rating on Fire Serv, indicating that the company's issues have been apparent for months, with the stock down 70% since the downgrade [1][2]. Company Analysis - The downgrade was primarily due to problems with Fire Serv's Clover product, a point of sale system, suggesting systemic issues within the company [2]. - The analyst notes that management has focused too aggressively on Clover, potentially neglecting other areas of investment [7]. - The payments industry is undergoing significant technological changes, making it challenging for companies like Fire Serv, which have grown through mergers and acquisitions, to innovate and adapt [8][10]. Market Context - Only 5% of analysts are comfortable issuing sell ratings, highlighting the contrarian nature of the analyst's position [3]. - The earnings season shows that 80% of companies are beating estimates, but this is not unusual in the current market context [11]. Comparisons with Peers - Toast is highlighted as a strong competitor in the payments space, with a focus on a single vertical and a robust R&D budget, allowing for better performance compared to Fire Serv [9][14]. - Toast has shown significant growth potential, with a target price of $60, and is expected to maintain strong margins and market share [15][17]. Investment Strategy - The analyst emphasizes the importance of deep-dive research, which allows for a more informed and high-conviction view on companies, contrasting with the typical short-term focus of other investment banks [4][13].

Toast, Inc. (NYSE:TOST) is one of the stocks Jim Cramer recently discussed. A young investor inquired Cramer’s thoughts on the company, and asked if he would do anything with the position ahead of the company. In response, Cramer said: “Wow, I mean, think about that. Now there’s some, that kid’s got horse sense. Alright, look, I think Toast is right now, it’s trading on the idea that the restaurants aren’t doing well. Not that Toast isn’t doing well, because Toast happens to be doing very well. And you’re ...

Toast Inc. (NYSE:TOST) is one of the best up and coming stocks to buy right now. On October 24, Truist analyst Matthew Coad lowered the firm’s price target on Toast to $47 from $51 with a Buy rating on the shares. This sentiment was announced as part of the firm’s broader research note that previewed Q3 2025 earnings in the Payments and FinTech sector, as consumer spending has stayed robust in this sector. However, there is speculation that Q4 forecasts for some firms might disappoint the market. Truist L ...

Group 1: Toast, Inc. (NYSE: TOST) - Jim Cramer expressed interest in buying shares of Toast, Inc. but advised waiting for the earnings report on November 4 [1] - Citigroup analyst Bryan Keane initiated coverage on Toast with a Buy rating and a price target of $51 [1] - Wells Fargo analyst Jason Kupferberg also initiated coverage with an Overweight rating and a price target of $47 [1] Group 2: Energy Transfer LP (NYSE: ET) - Cramer has a favorable view of Energy Transfer, which recently increased its quarterly dividend from $0.33 to $0.3325 per share [2] - Energy Transfer shares fell 0.4% to settle at $16.93 [4] Group 3: Datavault AI Inc. (NASDAQ: DVLT) - Cramer noted that Datavault AI is "losing money hand over fist" and suggested reducing holdings while allowing the rest to run [2] - Datavault AI raised $2.5 million through a registered direct offering, selling shares at $0.34 and $0.47 [2] - Datavault AI shares dipped 17.3% to settle at $2.67 [4]

Core Insights - Toast, Inc. (NYSE: TOST) has been rated as a Buy by Freedom Capital Markets, with a price target set at $45, highlighting its successful penetration of the US restaurant market [1][2] - The company has achieved approximately 15% market coverage in US restaurant locations since 2011 [1] - Freedom Capital Markets identifies multiple growth catalysts for Toast, including market share gains in small and medium-sized businesses, opportunities in enterprise, food and beverage retail, and international markets [2][3] Company Overview - Toast, Inc. is an American company that provides financial technology solutions and restaurant management software, offering a cloud-based, all-in-one digital technology platform tailored for the restaurant industry [4] - The platform includes solutions for point of sale, payments, operations, digital ordering and delivery, marketing and loyalty, and team management [4] Growth Potential - The firm believes that the identified opportunities can drive sustained growth in key performance indicators, particularly in net new locations and annualized recurring revenue [3] - Toast may exceed its medium-term targets shared during its May 2024 Investor Day [3]

Earnings Reports - Microsoft Corporation is set to release its first-quarter earnings on October 29, with analysts expecting earnings of $3.66 per share and revenue of $75.36 billion [1] - Goldman Sachs reported third-quarter net revenue of $15.18 billion, a 20% year-over-year increase, surpassing the consensus estimate of $14.10 billion. GAAP earnings were $12.25 per share, up from $8.40 a year ago and above the consensus of $10.86 [3] - Charles Schwab reported adjusted earnings per share of $1.31 for the third quarter, a 70% year-over-year increase, exceeding the analyst consensus estimate of $1.25. Quarterly sales reached $6.135 billion, a 27% year-over-year increase, surpassing the expected $6.009 billion [4] Stock Performance - Goldman Sachs shares fell 1.3% to close at $758.09 [7] - Microsoft shares declined 0.4% to close at $511.61 [7] - Charles Schwab shares decreased by 1% to close at $93.41 [7] - Toast, Inc. shares increased by 0.5% to settle at $37.40 [7]

Company Performance - Toast (TOST) closed at $36.70, down 1.26% from the previous session, underperforming the S&P 500's gain of 0.58% [1] - Over the past month, Toast shares have depreciated by 9.16%, while the Computer and Technology sector gained 6.37% and the S&P 500 gained 3.68% [1] Upcoming Earnings - Toast is expected to report an EPS of $0.24, reflecting a growth of 242.86% year-over-year [2] - Revenue is projected to be $1.59 billion, up 21.56% from the same quarter last year [2] Fiscal Year Estimates - For the entire fiscal year, earnings are estimated at $0.94 per share, indicating a growth of 3033.33% from the previous year [3] - Revenue for the fiscal year is projected at $6.07 billion, representing a 22.34% increase from the prior year [3] Analyst Estimates and Stock Performance - Recent analyst estimate revisions are crucial as they reflect near-term business trends, with positive revisions indicating a favorable business outlook [3] - The Zacks Consensus EPS estimate has decreased by 5.12% in the past month, and Toast currently holds a Zacks Rank of 3 (Hold) [5] Valuation Metrics - Toast has a Forward P/E ratio of 39.4, which is a premium compared to the industry average Forward P/E of 29.68 [6] - The Internet - Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 85, placing it in the top 35% of over 250 industries [6]

Core Thesis - Toast, Inc. is viewed positively due to its strong financial position, rapid growth, and strategic positioning in the restaurant technology ecosystem, suggesting it is a compelling investment opportunity [1][4]. Financial Performance - As of September 24th, Toast's share price was $37.53, with trailing and forward P/E ratios of 97.33 and 31.35 respectively [1]. - The company has zero debt, with cash representing approximately 7% of its market capitalization, indicating a solid foundation for growth [2]. - Revenue is growing over 20% year-over-year, reflecting robust adoption of its platform across the restaurant industry [2]. Valuation Metrics - The stock trades at an attractive 35x forward free cash flow, with an adjusted PEG ratio of 1.8x, suggesting the market may be underestimating the company's long-term growth potential [3]. - Analysts project a price target of $60 per share by summer 2026, indicating significant upside from current levels [3]. Strategic Positioning - Toast operates as a comprehensive restaurant operating system, integrating payments with back-office management, which creates strong network effects as restaurants increasingly rely on a unified system [3]. - The combination of rapid growth, financial strength, and strategic positioning makes Toast a standout opportunity for investors seeking scalable SaaS solutions in the foodservice industry [4]. Market Outlook - The company is well-positioned to continue capturing market share while generating high-margin recurring revenue, representing a high-quality, high-growth investment with an attractive risk/reward profile [4]. - Previous coverage highlighted Toast's vertically integrated platform, strong post-COVID recovery, and AI-driven operational insights, with the stock price appreciating approximately 4.5% since then [5].

Core Viewpoint - The article highlights three growth stocks that have experienced significant declines but are expected to rebound, potentially increasing by over 30% in the next 12 months according to Wall Street analysts [1]. Company Summaries 1. Atlassian - Atlassian focuses on collaboration tools for software development and project management, with products like Bitbucket and Jira [2]. - The stock has fallen more than 50% from its 52-week high due to disappointing guidance and insider sales [2]. - Analysts project a 66% upside potential, with 25 out of 32 analysts rating it as a buy or strong buy [3]. - The company's cloud business is a significant factor in its recovery potential, with analysts noting its cloud value proposition has tripled recently [4]. 2. Salesforce - Salesforce is a leader in the CRM market, having dominated for 12 consecutive years with its SaaS model [4]. - The stock is down over 30% from its January peak, primarily due to concerns over the slow returns from its AI initiatives [5]. - The consensus price target indicates a potential increase of approximately 38%, with 43 out of 55 analysts rating it as a buy or better [6]. - The launch of Agentforce, an AI software, has led to over 12,500 closed deals, contributing to analyst optimism [7]. 3. Toast - Toast provides cloud-based restaurant management software, covering various operational aspects for restaurants [8]. - The stock has declined around 25% from its summer high, reflecting a volatile performance [8]. - Among 26 analysts, 13 rated it as a buy or better, with an average price target suggesting a 34% upside potential [10]. - The company achieved a record of 8,500 net new locations added in Q2 2025 and formed a partnership with American Express to enhance customer experiences [11]. Analyst Sentiment - Analysts are generally bullish on the long-term prospects of Atlassian, Salesforce, and Toast, despite recent stock declines [11]. - Among the three, Toast is highlighted for its growth potential, supported by a low PEG ratio of 0.25 [12].

Core Viewpoint - Toast's stock has not recovered from a recent pricing glitch, presenting a buying opportunity for investors despite the company's strong growth fundamentals [1][4][10]. Company Overview - Toast has developed a comprehensive operating system for restaurants, integrating various management functions and increasingly incorporating artificial intelligence into its offerings [5]. - The company generates revenue by collecting a small percentage of every payment processed through its system, aligning its interests with those of its restaurant clients [6]. Recent Performance - In the last quarter, Toast added a record 8,500 net new locations, totaling approximately 148,000, which represents a 24% increase year-over-year [7]. - Subscription revenue increased by 37% to $227 million, while annual recurring revenue (ARR) reached $1.9 billion, up 31% [7]. - Adjusted EBITDA surged by 75% to $161 million, and management has raised its full-year guidance for both revenue and earnings [7]. Market Potential - There are about 750,000 restaurants in the U.S., many of which still use outdated systems, providing significant growth opportunities for Toast [8]. - The company has expanded its offerings to various verticals, including coffee shops, bakeries, hotels, and grocery stores, enhancing its customer base and recurring revenue potential [8]. International Expansion - Toast has entered its fourth international market, launching operations in Australia, alongside existing markets in the U.K., Ireland, and Canada, with further global expansions anticipated [9]. Valuation and Investment Opportunity - Following the stock's decline, Toast's valuation appears attractive, trading at an enterprise value-to-ARR ratio of around 9 times the estimated 2025 ARR of $2.1 billion [10]. - The company's ARR is growing at nearly 30% annually, indicating a strong growth trajectory for a leading software-as-a-service (SaaS) company [10]. - The current disconnect between the stock's performance and the company's fundamentals presents a rare opportunity for investors, especially if strong Q3 results are reported [11].