12:01 PM EST, 02/20/2025 (MT Newswires) -- Toast (TOST) is poised for a "new, bigger and better bull case" by replicating core US gains in new growth markets after strong guidance followed Q4 revenue and profitability beats in Q4, Morgan Stanley said Thursday in a report.

"Toast continues to beat its guidance and well manage expectations as its profitability delivers rapid growth at scale," the report said.

The company added 7,000 net new locations in Q4 to reach 134,000 live locations, and the steady expansion supports growth prospects, Morgan Stanley said.

Despite the strong overall Q4 performance, some key metrics, including gross payment volume and certain growth measures, lagged behind investor expectations, and the degree of upside seen in previous quarters has narrowed, signaling potential caution, the report said.

Morgan Stanley named Toast a top pick, boosted its price target on the stock to $50 from $46 and maintained its overweight rating.

Price: 38.29, Change: -1.69, Percent Change: -4.23