Toast’s fee for online orders to improve take rate, says DA Davidson

DA Davidson keeps a Buy rating and $25 price target on Toast after the company formally announced plans to roll-out a $0.99 fee for online orders above $10. The new fee should help Toast boost the company’s take rate on payment volume and will likely help margins, the analyst tells investors in a research note. The company’s management will likely quantify the anticipated benefit on its Q2 earnings call in late July, the firm added.