Marqeta Gets 20% Price Target Cut, Toast Gets 20% Price Target Bump By This Analyst After Q2 Performance

Results were solid amid a mix of macro challenges, with management from Marqeta, Inc MQ and Toast, Inc TOST having contrasting views for the remainder of the year, Mizuho analyst Dan Dolev noted.
He updated estimates & price targets post week 3 of 2Q earnings.
Dolev maintained Marqeta with a Buy and cut the price target from $12 to $10. He hailed MQ's better than anticipated earnings, albeit the forward guidance and departure of the CEO/Founder and the COO put a slight damper on results.
A key drag on the stock was the anticipated slowdown in growth from BNPL & crypto clients and more hesitation on behalf of fintech, he said.
TPV for the top five customers accelerated to +48% Y/Y (vs. +39%), whereas other customers slowed from +168% to +81% Y/Y.
The price target reflected his downward revision to the 2024 gross profit multiple amid management caution, he added.
On the other hand, Dolev maintained Toast with a Neutral and raised the price target from $18 to $22.
TOST printed a solid quarter for 2Q, reporting an improvement in most primary KPIs paired with an increase to the FY guide greater than the 'beat' during the quarter, he noted.
Record new location adds GPV acceleration and strong acceleration in GPV per location were all notable positives, with some moderation to the gross and net take rates sequentially, he said.
Dolev views the increase in GPV / location to nearly $1.4 million as the most significant positive. The price target reflected the FY24 GP multiple boost, given management's forward optimism, he added.
Price Action: MQ shares traded higher by 1.18% at $8.61 on the last check Monday.

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