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Investing.com - Bernstein SocGen Group has raised its price target on DoorDash Inc. (NASDAQ:DASH) to $265.00 from $210.00 while maintaining an Outperform rating on the stock. The new target represents potential upside from the current price of $239.17, with the stock already showing impressive momentum, having delivered a 125.42% return over the past year.
Bernstein analyst Nikhil Devnani expressed confidence in DoorDash’s fundamentals, anticipating "another quarter of strong fundamentals and positive revisions to sell-side numbers." The firm expects DoorDash’s Gross Order Value (GOV) to beat expectations, modeling a modest acceleration to 21% year-over-year growth for Q2 and 20% for Q3. This outlook aligns with the company’s recent performance, as shown by its robust 23.35% revenue growth in the last twelve months.
The research firm believes the top end of DoorDash’s Q2 EBITDA guidance of $650 million should be achievable based on GOV strength and take rate recovery. Bernstein models $2.76 billion EBITDA for the current year and $3.66 billion for next year. InvestingPro analysis reveals several positive indicators, including strong financial health and profitable operations over the last twelve months. Subscribers can access 15+ additional ProTips and comprehensive valuation metrics for deeper insights.
Despite the positive outlook, Bernstein noted that high expectations make the risk/reward less favorable heading into earnings, with the stock trading at approximately 30 times EBITDA. The firm indicated it would "look to lean in on any pullbacks" as underlying trends support the long-term bull case. According to InvestingPro’s Fair Value analysis, DoorDash appears overvalued at current levels, suggesting investors might benefit from waiting for potential pullbacks. For comprehensive analysis, including detailed valuation metrics and growth projections, check out the Pro Research Report available exclusively to subscribers.
The analyst also mentioned that the pending Roofoods (ROO) acquisition is "likely additive" to future financial performance, though the impact of this deal was not specifically quantified in the report.
In other recent news, DoorDash Inc. is set to announce its second-quarter earnings, with analysts at Benchmark expecting results at the high end of guidance due to strong performance in grocery and convenience segments. The firm raised its price target for DoorDash to $260, acknowledging challenges in U.S. restaurant orders but highlighting market share gains. Loop Capital also increased its price target to $305, citing DoorDash’s potential in local commerce and synergies from the proposed Deliveroo (OTC:DROOF) acquisition. Citizens JMP raised its target to $250, expressing confidence in DoorDash’s ability to drive margin expansion and growth, supported by improved grocery unit economics and advertising. Meanwhile, Jefferies downgraded DoorDash to Hold, despite raising the price target to $250, due to concerns over affordability initiatives and stock valuation. BTIG raised its price target to $265, pointing to accelerating order volume growth and under-appreciated growth drivers such as DashPass and advertising revenue. These developments reflect a range of perspectives from analysts on DoorDash’s future potential and challenges.
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