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Investing.com - Benchmark raised its price target on DoorDash Inc. (NASDAQ:DASH) to $260 from $225 while maintaining a Buy rating ahead of the company’s second-quarter earnings report. The stock has delivered an impressive 127% return over the past year, with analysts’ targets now ranging from $179 to $315. InvestingPro analysis suggests the stock is currently trading above its Fair Value.
The food delivery company, now commanding a market capitalization of $99.37 billion, is scheduled to report its second-quarter results on Wednesday, August 6, after market close. Benchmark expects DoorDash to report gross order value and adjusted EBITDA at the high end of guidance for the quarter. With a robust revenue growth of 23.35% in the last twelve months, InvestingPro data shows 14 additional key insights available for subscribers.
The firm cited steady U.S. restaurant same-store sales comparisons and outperformance in grocery and convenience volume as factors supporting its outlook. Data from Mercatus contributed to this assessment of DoorDash’s performance across different segments.
Benchmark’s second-half outlook acknowledges decelerating U.S. restaurant orders, based on its second Annual Restaurant and Grocery Delivery survey. The firm noted this suggests reduced second-half incrementality compared to last year, reflecting heightened budgetary and economic concerns among consumers.
Despite these challenges, Benchmark believes DoorDash’s market share gains, which increased 3 percentage points year-over-year, will help insulate the company’s second-half comparisons. The price target increase reflects a reduced weighted average cost of capital in Benchmark’s valuation model. Trading at a P/E ratio of 300.47, the company maintains strong financials with more cash than debt on its balance sheet. Get the complete financial picture with InvestingPro’s comprehensive research report.
In other recent news, DoorDash has seen several significant developments that may interest investors. Loop Capital has raised its price target for DoorDash to $305, maintaining a Buy rating, citing the company’s expansion into restaurant operations and the potential synergies from its proposed Deliveroo (OTC:DROOF) acquisition. Citizens JMP also increased its price target to $250, maintaining a Market Outperform rating, and expressed confidence in DoorDash’s ability to fund growth through cost synergies and improving unit economics in its grocery segment. Meanwhile, Jefferies downgraded DoorDash from Buy to Hold, even though it raised its price target to $250, citing concerns about affordability initiatives potentially limiting revenue growth. BTIG also raised its price target to $265, maintaining a Buy rating, and highlighted DoorDash’s accelerating order volume growth and strong fundamentals. Additionally, DoorDash has launched a drone delivery service in collaboration with Flytrex in the Dallas-Fort Worth area, expanding its technological capabilities in the local delivery market. This new service is expected to reach over 30,000 households and involves innovative drone traffic control technology. These developments reflect DoorDash’s ongoing efforts to enhance its market position and explore new growth avenues.
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