Toast price target raised to $27 from $25 at Mizuho

Mizuho analyst Dan Dolev raised the firm’s price target on Toast to $27 from $25 and keeps a Buy rating on the shares. The analyst’s “deep dive” on the company’s customer acquisition costs and payback period suggests that the remainder of 2023 should see payback declining as Toast laps a 2022 hiring boost. The firm increased estimates and the stock’s valuation multiple on improving unit economics.