Toast (NYSE: TOST) is seeing growing demand for its cloud-based technology platform for the restaurant industry. The market is noticing this, and the stock price rallied sharply this year, up 34% year to date.

While there are mixed opinions on the stock on Wall Street, analysts at Evercore ISI Group recently weighed in with an outperform (buy) rating and a $32 price target, representing a potential upside in the near term of 31%. Here's why Evercore might be right.

The mixed views on Toast's future are understandable. The company operates in a competitive market for restaurant software, and it reported a large net loss of $246 million last year. These are reasons why some analysts are not as bullish on the company's prospects, but the company's continued top-line growth suggests it has advantages that may be underestimated.

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Source Fool.com