DoorDash stock holds Buy rating at BTIG despite investment focus

Investing.com - BTIG maintained its Buy rating and $315.00 price target on DoorDash Inc. (NASDAQ:DASH) following the company’s latest quarterly results. This target sits between analyst high and low targets of $360 and $205, respectively. According to InvestingPro data, DASH has delivered an impressive 40.3% return over the past year, though the stock appears slightly overvalued based on comprehensive Fair Value analysis.

The food delivery platform delivered what BTIG described as a "typically strong" quarter, though shares experienced weakness in after-hours trading as investors reacted to the company’s investment plans. DoorDash’s revenue reached $11.89 billion with robust growth of 23.78% over the last twelve months, and the company is now profitable.

BTIG noted that DoorDash is prioritizing investment over margin expansion, similar to the situation that affected Uber’s recent market reception, with commentary likely to reduce 2026 EBITDA expectations from the bullish $4 billion-plus case some investors anticipated. InvestingPro data shows DoorDash holds more cash than debt and maintains a healthy current ratio of 2.07, giving it financial flexibility for these investments. Discover 13 more ProTips and access the comprehensive Pro Research Report covering DASH’s financial health and growth prospects.

The research firm adjusted its 2026 EBITDA forecast downward to $3.7 billion, reflecting "several hundred million" in planned investments that could reduce incremental margin by approximately one percentage point. Current EBITDA stands at $834 million, with analysts forecasting 24% revenue growth this year.

BTIG characterized DoorDash’s investment approach as "offensive" and supportive of sustainable 20%-plus growth while still allowing for margin expansion, albeit at a more moderate pace than some investors expected. With a PEG ratio of 0.48, DoorDash is trading at a low P/E ratio relative to its near-term earnings growth potential.

In other recent news, DoorDash reported its third-quarter 2025 earnings, revealing that earnings per share (EPS) fell short of analyst forecasts. Despite the earnings miss, the company surpassed revenue expectations, indicating strong financial performance in other areas. During the earnings call, DoorDash highlighted ongoing investments in new technologies and product expansions aimed at enhancing future margins. Analysts at Citizens and Goldman Sachs both adjusted their price targets for DoorDash, with Citizens lowering it to $285 and Goldman Sachs to $279, while maintaining positive ratings. These adjustments were influenced by DoorDash’s plans to invest several hundred million dollars in new initiatives and platform development for 2026. The company also noted progress in its broader local commerce strategy, with improvements in user engagement and platform economics. These developments reflect DoorDash’s strategic focus on long-term growth despite short-term earnings challenges.

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