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  • 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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