As previously reported, BofA downgraded Toast (TOST) to Neutral from Buy with a price target of $16, down from $22. Shares have lagged significantly since the Q3 print, notes the analyst, who sees risks that could inhibit re-rating higher in the near-term. In addition to uncertain macro-driven restaurant spending trends, the firm believes Toast faces intensifying competition from the likes of Block (SQ), Fiserv’s (FI) Clover, and Shift4 Payments (FOUR), who it says have been narrowing gaps in product and/or distribution.
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