- Mizuho analyst Dan Dolev upgraded Toast, Inc TOST from Neutral to Buy and raised the price target from $22 to $24.
- Mizuho's survey of 55 Toast restaurants showcased the positive impact on sales and profits from cross-selling payroll and adjacent software-as-a-service products.
- The survey revealed that restaurants using Toast for payroll use an average of two times more SaaS products and pay $4,000-$5,000 more per year versus those that do not.
- TOST's restaurant land-grab is in full swing.
- The take rate concerns discussed in his October 2021 initiation were more manageable than feared.
- Improving the SaaS attach rate is the next key milestone.
- His bottom-up model suggested that continued payroll and SaaS cross-sell success could help Toast reach profitability in 2023, one year ahead of the current consensus expectation.
- Price Action: TOST shares traded lower by 0.74% at $16.70 on the last check Monday.
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