Toast Stock Cools Off After Downgrade

Baird downgraded TOST to “neutral” from “outperform” this morning

Toast Inc (NYSE:TOST) stock is slipping today, after a downgrade from Baird to “neutral” from “outperform,” along with a price target of $28. The firm still sees long-term growth for the restaurant-based software-as-a-service (SaaS) name, however, and predicts favorable EBITDA margin expansion. At last glance, TOST was down 1.9% to trade at $26.44 — and  earlier fell as low as $25.88. 

This negative price action has the stock moving further from its May 16 two-year high of $27.90. Heading into today, the shares’ 14-day Relative Strength Index (RSI) sat all the way up at 72, firmly in “oversold” territory, so perhaps this pullback had been in the cards. Since the start of the year though, the equity is up 45.7%, with its 60-day moving average containing pullbacks in January, April, and May. 

More shifts in sentiment could swing the stock’s fortunes in either direction. Of the 25 analysts in coverage, 14 now carry a “hold” or worse rating, with the remaining 11 a “buy” or better. Meanwhile, the 12-month consensus price target of $27.46 is a chip-shot away from current levels. 

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