Toast shares slip after Mizuho cuts to 'neutral', lowers PT

Toast

02/10/2023 13:18

** Shares of Toast Inc  TOST.N  fall 2.3% to $18.2 before
the bell
    ** Mizuho downgrades the restaurant software firm to
"neutral" from "buy", slashes PT to a Street-low of $16 from $30
    ** The new price target represents a 14.5% downside to the
stock's last close
    ** Brokerage says co's Gross Processing Volume (GPV) per
location - monetary transactions processed through a payments
platform - slowing faster than restaurant inflation
    ** Says slowing GPV signals slowing penetration of
enterprise segment 
    ** Notes co's provision of merchant cash advance loans to
restaurants adds additional risk 
    ** Mizuho's survey shows restart of student loan payments
has led to lower spend on restaurants
    ** Lowers FY24 gross revenue estimates to $4.82 bln from
$5.04 bln 
    ** Nine of 21 brokerages rate the stock "buy" or higher, 11
"hold" and one "sell"; their median PT is $25 -LSEG data
    ** Up to Friday's close, stock had risen ~3.9% YTD

 (Reporting by Shristi Achar A in Bengaluru)
 ((Shristi.AcharA@thomsonreuters.com
https://twitter.com/ShristiAchar;))