Toast gains after Mizuho upgrades to outperform, sets Street-high PT

Toast

18/07/2024 15:17

** Shares of restaurant software provider Toast  TOST.N 
advance 3.1% to $27.45
    ** Mizuho upgrades stock to "outperform" from "neutral";
hikes PT to a Street high of $33 from $21 
    ** Says TOST could become one of the large
retailers/merchants in the US with volumes expected to approach
$200bn by 2025
    ** Says TOST may be overpaying on credit interchange by as
much as 25-75bps; sees opportunity to renegotiate interchange
fees like other large retailers
    ** Renegotiation could lower TOST's cost of credit
processing over medium term, improving profitability and leading
upside to current early FY26 EBITDA consensus
    ** 13 brokerages rate stock "buy" or higher, 12 rate it
"hold" and 1 sell, median PT at $28 - LSEG data
    ** Stock up almost 50% YTD

 (Reporting by Purvi Agarwal in Bengaluru)
 ((Purvi.Agarwal@thomsonreuters.com))