Toast price target lowered to $20 from $31 at Needham

Needham lowered the firm’s price target on Toast to $20 from $31 and keeps a Buy rating on the shares. The company’s Q3 results were solid as revenue was in-line with consensus expectations and GPV strength, 6,500 location adds, and ARPU gains drove impressive recurring revenue growth, but the midpoint of the Q4 guide is below consensus and management called out some moderation in GPV per location due to tough macro conditions and increased mix shift towards smaller locations, the analyst tells investors in a research note.