TOST - Toast: Perfectly Warm But Needs More Butter
2024-06-17 07:18:01 ET
Summary
- Toast is priced at approximately 68x next year's free cash flows, a rich valuation despite its strong business performance.
- Continued bullishness depends on an uptick in growth rate momentum in the second half of 2024.
- Balancing rapid expansion with consistent service quality and operational efficiency remains a primary challenge for TOST.
Investment Thesis
Toast ( TOST ) continues to gain traction, even though its stock doesn't reflect the progress the company is making. Simply put, its stock isn't cheap. Far from it. I estimate that Toast is priced at approximately 68x next year's free cash flows....
Toast: Perfectly Warm, But Needs More Butter