Toast Gets An Upgrade As Industry Survey Exudes Promise

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.