On Friday, BTIG demonstrated continued confidence in DoorDash Inc. (NASDAQ: NASDAQ:DASH) by increasing its price target on the company's shares to $200, up from the previous target of $175. With the stock currently trading at $175.89 and near its 52-week high of $181.30, the firm has maintained a Buy rating. According to InvestingPro data, DoorDash has delivered impressive returns, with the stock up over 77% year-to-date.
The revision in the price target to $200 comes on the heels of DoorDash's strong quarter-to-date (QTD) performance. BTIG's analysis indicates that Gross Order Volume (GOV) growth has remained stable during the fourth quarter, suggesting another positive earnings report for DoorDash. This optimism is supported by the company's robust revenue growth of 24.56% and eight analysts recently revising their earnings estimates upward, as reported by InvestingPro.
Additionally, the firm has updated its outlook for DoorDash up to the year 2025. The revision includes modestly higher GOV and take-rate projections, which are metrics used to measure the company's earnings and profit margins from its operations.
Despite DoorDash's shares being one of the top year-to-date performers and trading at the higher end of BTIG's coverage spectrum, the firm believes that the company stands out as a leader in the delivery service industry.
While BTIG highlights DoorDash's compelling growth prospects, InvestingPro analysis suggests the stock is currently trading above its Fair Value. Investors can access 15 additional ProTips and a comprehensive Pro Research Report for deeper insights into DoorDash's financial health and growth potential.
In summary, BTIG's positive stance on DoorDash is reinforced by the company's consistent performance and promising growth trajectory in the competitive delivery service market. The new price target of $200 reflects BTIG's expectations for DoorDash's continued success.
In other recent news, DoorDash has been the focus of multiple analyst upgrades following strong Q3 results. Citi, Mizuho (NYSE:MFG) Securities, BofA Securities, Loop Capital, DA Davidson, and Oppenheimer all increased their price targets for the company, citing factors such as consistent improvements in quality and selection, user growth, expansion into new verticals like grocery delivery, and strategic partnerships.
DoorDash's Q3 earnings exceeded projections, with the company reporting a 19% increase in Gross Order Value (GOV), driven by advertising and efficient Dasher costs.
The company's international business is now gross profit positive, demonstrating improved contribution margins similar to those in the U.S. DoorDash's recent partnership with Lyft (NASDAQ:LYFT) aims to enhance the value proposition of its DashPass subscription service. The acquisition of Tazz by Wolt marks a significant step in expanding its market share in Europe.
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