Citizens lowers DoorDash stock price target to $285 on investment plans

Investing.com - Citizens lowered its price target on DoorDash Inc. (NASDAQ:DASH) to $285 from $335 while maintaining a Market Outperform rating, citing the company’s planned investments for 2026. Currently trading at $238, InvestingPro data indicates DoorDash is overvalued compared to its Fair Value, despite the stock’s impressive 41.88% year-to-date return.

The food delivery company announced during its third-quarter earnings report that it would invest several hundred million dollars in new initiatives and platform development next year, which overshadowed its positive quarterly results.

DoorDash reported Gross Order Value (GOV) that exceeded the high end of guidance by $315 million, while its EBITDA of $754 million was $4 million above consensus estimates. The company’s last twelve months EBITDA stands at $834 million, with total revenue reaching $11.89 billion and growing at 23.78%.

The company is expanding investment across multiple areas including Deliveroo, software solutions, grocery and retail, autonomy, DashMart Fulfillment Services, and is unifying its technology stack with an AI-first approach.

Citizens noted that DoorDash added more U.S. members in the first nine months of this year than in all of 2024, with U.S. restaurant marketplace GOV accelerating to its highest year-over-year growth in three years, while unit economics improved across the business. InvestingPro rates DoorDash’s overall financial health as "GOOD" with particularly strong scores in growth and cash flow. Discover DoorDash’s comprehensive Pro Research Report, available among 1,400+ top US stocks analyzed in depth.

In other recent news, DoorDash reported lower-than-expected earnings for the third quarter of 2025, with earnings per share (EPS) falling short of forecasts. However, the company’s revenue exceeded expectations, showcasing strong financial performance despite the earnings miss. DoorDash management emphasized their commitment to expanding product offerings and investing in new technologies to improve future margins. Meanwhile, Goldman Sachs adjusted its price target for DoorDash to $279, down from $315, while maintaining a Buy rating. This adjustment follows DoorDash’s earnings report, where the company highlighted its execution of a broader local commerce strategy. The strategy has reportedly led to increased user engagement and strengthened platform economics. These developments indicate a focus on long-term growth and adaptation to evolving consumer behavior.

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