After underperforming for the majority of the year, JPMorgan believes that the tide will turn for Toast , which provides point-of-sale services to restaurants. The bank upgraded the fintech stock to an overweight rating from neutral. JPMorgan also set a price target of $43, which is approximately 22% higher than Toast’s Wednesday close of $35.17. Shares of Toast have slipped 4% in 2025. JPMorgan analysts led by Tien-tsin Huang said that this year-to-date underperformance has offered up an opportunity to turn more overweight. TOST YTD mountain TOST YTD chart Huang argued that Toast now checks several boxes that he likes, including an “enviable combination of forecasted growth and adjusted EBITDA margin” next year. Huang sees an upside to current valuation if Toast demonstrates it can successfully stack total addressable markets such as retail food and beverage, enterprise and international at an attractive return on investment level. “We see TOST maintaining top decile growth as a bonafide software-led payments leader unburdened by legacy distribution/tech that is stacking [total addressable markets] using a proven playbook with expense discipline to deliver $977M in 2027E EBITDA,” he wrote. Huang also applauded Toast’s modern platform and unique brand affinity among restaurants. “We like Toast as a disruptive player in a restaurant industry that is overdue for IT modernization, and we appreciate the strong, organic brand it has developed, particularly in the SMB end of the market,” he said. Huang’s 20% recurring gross profit growth forecast captures his view that Toast should continue to see high win rates and gain deeper market penetration. The company’s accelerating growth momentum also warrants its high price target, he added. “Our target multiple values TOST ahead of its high-growth peers (e.g. BILL, CHYM, KLAR, RELY) and in-line with PAY (N-rated), which we think gives TOST credit for its premium growth record, recognizing it competes in a highly competitive category,” Huang said. “TOST is among the fastest growers in the comp group from FY24-28E with materially improving profitability, justifying a lofty multiple and supporting our Overweight rating.”
