Toast price target raised to $40 from $27 at RBC Capital

RBC Capital analyst Daniel Perlin raised the firm’s price target on Toast (TOST) to $40 from $27 and keeps a Sector Perform rating on the shares. The company delivered a strong quarter with results above the Street’s estimates, particularly in adjusted EBITDA, which was 43% higher than the Street, helped by increased contribution from high-margin Toast Capital, strong growth in SaaS, and disciplined cost management, the analyst tells investors in a research note.