Jefferies Raises EPS Estimate for Toast, Citing Pricing Power and AI Traction
- Reports
- 2
- Developments
- 1
- Repetition
- 50%
New informationRepeats or wire copies
What happened
Jefferies raised its earnings per share estimate for Toast, Inc. on September 25, 2026, viewing the recent decline in Toast's shares as an attractive entry point relative to its peers. The bank noted that Toast maintains an incumbent market position and pricing power, supported by improving traction for its artificial intelligence product, Toast IQ. Jefferies also found evidence that Toast has recently raised prices, introducing a new promotion that requires a 24-month contract and $750 in monthly software spending.
Why it matters
The analysis suggests that Toast's market position and pricing power could drive higher revenue, particularly through new high-value contracts. Jefferies expects the new sign-up promotion to attract higher-value prospects, while positive sentiment from restaurant managers regarding Toast's point-of-sale system was also noted.
Who's involved
- Toast, Inc.Cloud-based restaurant software company analyzed by Jefferies.
- AdyenDutch financial services company that receives global processing capabilities from Toast.
- GoogleAmerican multinational technology company whose services Toast's growth might utilize.
- LightspeedCanadian retail software company that competes directly with Toast for market share.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- AdyenSpeculative
Adyen might see increased transaction volume due to Toast's improved financial health and pricing power.