Comedy rock legend and Michigan mainstay Heywood Banks is perhaps best known for his song about toast. Seriously, if you haven’t heard it, try it sometime; you’ll never hear a song glorifying toasted bread that hard ever again. Recently, analysts revealed they felt much the same way about Toast (TOST), the restaurant services company. But investors weren’t feeling that same love and sent shares down fractionally in the closing minutes of Thursday’s trading. Mizuho Securities, via analyst Dan Dolev, hiked its rating on Toast from Neutral to Outperform.
He suggested there was a possibility ahead that Toast could lower its credit processing costs. That’s one of Toast’s biggest expenses and would open up a path to much greater profitability.
Dolev noted that Toast may be overpaying its credit interchange rates, especially compared to others in the industry. If that’s the case, there may be a chance to renegotiate…
