DoorDash stock price target raised to $235 from $225 at Citizens JMP

Citizens JMP raised its price target on DoorDash Inc. (NASDAQ:DASH) to $235 from $225 on Thursday, while maintaining a Market Outperform rating on the food delivery company’s stock. The stock has shown remarkable momentum, delivering an 89% return over the past year and currently trading near its 52-week high of $220.88.

The price target increase follows DoorDash’s launch of new AI-powered advertising tools for brands and merchants, along with its acquisition of Symbiosys, an AI-powered advertising platform, for $175 million.

DoorDash revealed that its advertising business reached a $1 billion run rate last year, signaling the company’s strategic focus on accelerating this revenue stream. The company has historically defined itself across five business segments: U.S. restaurants, international restaurants, non-restaurant services, advertising, and platform services. According to InvestingPro data, the company’s overall revenue growth remains robust at 23.35%, with total revenue reaching $11.24 billion in the last twelve months.

Citizens JMP estimates DoorDash’s global advertising revenue in 2024 was approximately $950 million, representing a 1.2% penetration rate, which remains below the 2% level achieved by competitor Uber (NYSE:UBER) Eats’ restaurant business.

The investment firm expressed increased optimism about DoorDash’s 2026 EBITDA projections, noting that advertising products are improving while advertising revenue is gaining momentum, with potential to significantly enhance the company’s profitability.

In other recent news, DoorDash has unveiled a major update to its advertising platform, incorporating AI-powered tools and acquiring the ad tech platform Symbiosys for $175 million. This expansion aims to enhance its offsite advertising capabilities, reaching over 150,000 advertisers across more than 30 countries. DoorDash and Wolt Ads are projected to achieve an annualized advertising revenue run rate exceeding $1 billion in 2024. BofA Securities responded by raising DoorDash’s price target to $245, maintaining a Buy rating due to the significant platform updates. Stifel analysts initiated coverage with a Hold rating and a $198 price target, noting DoorDash’s strategic international expansion and advertising potential. Truist Securities also maintained a Buy rating with a $230 target, citing strong Q2 tracking and growth in gross spend surpassing expectations. Meanwhile, Coco Robotics, a delivery startup partnering with DoorDash, raised $80 million in funding, highlighting its growing presence in the delivery sector. These developments illustrate DoorDash’s ongoing efforts to expand its advertising and delivery services globally.

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