Street Calls of the Week
Investing.com - Barclays has reinstated coverage on DoorDash Inc. (NASDAQ:DASH) with an Equalweight rating and a $272.00 price target following the company’s acquisition of Deliveroo. According to InvestingPro data, analyst targets for DoorDash currently range from $205 to $360, with the stock trading at $254.59. Analysis suggests the stock is trading above its Fair Value.
The food delivery company’s shares have significantly outperformed the broader market year-to-date, rising nearly 57% compared to the NASDAQ’s 18% gain, with a remarkable 72% return over the past year according to InvestingPro data.
Barclays identifies several bullish factors for DoorDash, including its position as the U.S. restaurant delivery market leader with commanding market share, industry-low fees with strong unit economics, growth potential in international markets and new verticals, and increasing advertising revenue to sustain margins.
The firm also outlines bearish considerations, noting that 2026 will likely bring another year of consolidation in the food delivery industry following moves by Prosus and Delivery Hero, while DoorDash faces stiff competition in international markets and new verticals.
Barclays suggests DoorDash’s valuation premium versus peers is currently at a historic high, potentially limiting multiple expansion and leaving less room for error as the company continues investing heavily, particularly in European markets.
In other recent news, DoorDash has been the focus of several key developments. Truist Securities has increased its price target for DoorDash to $340, maintaining a Buy rating, based on data showing U.S. gross order value growth surpassing expectations. Meanwhile, BTIG has reiterated its $315 price target for DoorDash, considering the impact of the Deliveroo acquisition, which is projected to significantly boost gross order value. Guggenheim has also initiated coverage with a Buy rating and a $330 price target, highlighting DoorDash’s potential in the Grocery & Retail sector.
In another development, DoorDash has partnered with Waymo to launch an autonomous delivery service in Metro Phoenix, initially using Waymo’s vehicles for deliveries from DashMart. Despite a short report from Culper Research alleging unauthorized worker onboarding, DoorDash’s stock rose, indicating investor confidence. These recent developments reflect a period of strategic growth and investment for DoorDash.
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