JPMorgan Sees Regulatory Upside, Keeps $43 Target on Toast (TOST)

On December 4, JPMorgan expert Tien-tsin Huang upgraded Toast, Inc. (NYSE:TOST) to Overweight from Neutral and kept the terms people astatine $43. The steadfast said determination could beryllium meaningful upside to estimates if interchange fees extremity up being regulated. JPMorgan besides noted that Toast should proceed delivering “top decile growth” arsenic a software-driven payments subordinate that is “unburdened” by bequest distribution.

For the 3rd 4th of 2025, Toast, Inc. (NYSE:TOST) posted different beardown acceptable of results. Revenue roseate 34%, margins came successful astatine 35%, and the institution saw dependable year-over-year maturation successful caller determination adds. The institution besides shared that it has crossed $2 cardinal successful ARR for the archetypal time. Management pointed to wins with large operators specified arsenic Nordstrom, TGI Fridays, and Everbowl, on with a deeper concern with Uber to assistance restaurants amended negociate off-premise sales.

The institution added that its Enterprise, international, and nutrient and beverage retail businesses are connected way to scope a combined $100 cardinal successful ARR this year. It besides sees country for each of those segments to yet turn into $1 cardinal ARR opportunities.

Toast, Inc. (NYSE:TOST) is simply a cloud-based, all-in-one integer exertion level designed specifically for the edifice industry.

While we admit the imaginable of TOST arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None.