Toast price target lowered to $26 from $28 at BofA

BofA analyst Jason Kupferberg lowered the firm’s price target on Toast to $26 from $28 and keeps a Neutral rating on the shares. The firm thinks shares are trading down after hours despite a “solid” Q2 print due to net location adds that were slightly below expectations, recurring GP guidance being raised by less than the Q2 beat and GPV/location expectations that were ticked down due to declining same-store sales trends. The firm cites SaaS ARPU pressure, increasing competition, and a “rich valuation” for its continued Neutral rating on Toast shares.