UPDATE: Needham & Company Starts Toast Inc. (TOST) at Buy

Needham & Company analyst Mayank Tandon initiates coverage on Toast Inc. (NYSE: TOST) with a Buy rating and a price target of $70.00.

The analyst comments "We are initiating coverage of Toast (TOST) with a BUY rating and a $70 price target. TOST operates a comprehensive restaurant POS and management platform that combines modern payment processing and software solutions to help restaurants effectively grow and manage day-to-day operations. We believe the company is the leading pure-play provider focused on the restaurant industry, serving a ~$15B SAM that we estimate will expand to $110B over time as new products are added and the company pursues international expansion. Given the massive growth opportunity, we believe that TOST will be able to grow its recurring revenue at a 40%+ annual clip over the next several years, a best-in-breed growth rate that we believe warrants a premium valuation. Our $70 price target is based on an EV/recurring revenue multiple of ~45x our FY23 estimate."

For an analyst ratings summary and ratings history on Toast Inc. click here. For more ratings news on Toast Inc. click here.

Shares of Toast Inc. closed at $56.21 yesterday.

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