Stephens notes that Toast shares have come under pressure following management commentary at a competitor conference that its sees about 100-200 basis points of margin expansion in FY25, which is below current Street expectations of 380 points of margin expansion. The company plans to reinvest in growth areas such as including retail and international, which should expand the total addressable market and extend the runway for growth, adds the analyst. Stephens has an Equal Weight rating and $40 price target on Toast shares, which are down $4.10, or 10%, to $38.32 in afternoon trading.