Toast upgraded to Outperform from Neutral at Mizuho

Mizuho upgraded Toast (TOST) to Outperform from Neutral with a price target of $33, up from $21. With volumes approaching $200B by 2025, Toast would be the de facto fourth-largest retailer merchant in the U..S by volume, following the likes of Walmart (WMT) and Amazon.com (AMZN), the analyst tells investors in a research note. The firm’s analysis of the recent card network settlement court documents confirms that large merchants pay substantially lower credit card interchange fees. It sees potential opportunity for Toast to renegotiate interchange fees, thereby dramatically lowering its costs of credit processing over the medium-term.