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Investing.com - Cantor Fitzgerald raised its price target on DoorDash Inc. (NASDAQ:DASH) to $330.00 from $260.00 on Thursday, while maintaining an Overweight rating on the food delivery company’s stock. The stock has demonstrated remarkable momentum, with a 112% return over the past year and a 54% gain year-to-date, according to InvestingPro data.
The price target increase follows DoorDash’s quarterly results, which showed gross order value (GOV) accelerating by 3 percentage points to 23%, exceeding the high end of the company’s guidance by 3 percentage points. This growth was primarily driven by strong performance in the core U.S. marketplace business, with revenue growth reaching 23.8% and gross margins of 51%.
DoorDash’s third-quarter guidance suggests stable growth at the high end of expectations. Key performance indicators showed positive trends, with membership growth accelerating, order frequency increasing, and new customer cohorts growing year-over-year in the second quarter. InvestingPro analysis reveals the company maintains strong financial health with a current ratio of 1.66 and more cash than debt on its balance sheet.
The company continues to achieve efficiency gains, resulting in steady margin expansion. Cantor Fitzgerald has revised its FY26 EBITDA estimate upward by 3% following these results.
While DoorDash’s valuation has reached premium territory at 34 times FY26 estimated EBITDA, Cantor Fitzgerald expressed confidence in the company’s near-term revenue growth outlook and potential upside revisions to future profitability metrics.
In other recent news, DoorDash reported robust second-quarter earnings, exceeding expectations with both revenue and EBITDA surpassing the company’s guidance range. Analysts have responded positively to these results, with several firms raising their price targets for the company. BTIG increased its target to $315, citing strong topline growth driven by higher order volume and average selling prices. Truist Securities set a new target at $326, highlighting the company’s accelerating growth and improved third-quarter guidance. Stifel also raised its target to $239, acknowledging the company’s gross order value coming in above expectations. Roth/MKM adjusted their target to $265, noting the results were at the high end of DoorDash’s guidance. Additionally, BMO Capital increased their target to $288, emphasizing the company’s performance in exceeding gross order value and revenue projections. These developments reflect a generally optimistic outlook from analysts regarding DoorDash’s future performance.
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