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Investing.com - BTIG raised its price target on DoorDash Inc. (NASDAQ:DASH) to $265 from $225 while maintaining a Buy rating on the food delivery company’s shares. The stock, currently trading near its 52-week high with a market capitalization of $104.46 billion, has delivered an impressive 127% return over the past year according to InvestingPro data.
The firm cited accelerating order volume growth in its tracking data, which prompted it to raise estimates to the high end of DoorDash’s second-quarter guidance with gross order value (GOV) growth of 20%. This aligns with the company’s strong revenue growth of 23.35% over the last twelve months, maintaining a healthy gross profit margin of 50.24%.
BTIG noted it maintains above-consensus estimates for DoorDash in future years, based on what it describes as "under-appreciated drivers" including user growth, DashPass subscription mix, and advertising revenue, even before considering potential impacts from the Deliveroo (OTC:DROOF) acquisition. InvestingPro analysis indicates the company maintains excellent financial health, though current valuations suggest the stock may be trading above its Fair Value.
The research firm highlighted that DoorDash is trading at approximately 33 times its 2026 free cash flow estimate, but noted this would translate to a high-20s multiple on a pro forma basis when including Deliveroo, compared to what it calculates as a roughly 40% underlying organic growth rate.
DoorDash shares recently reached an all-time high, prompting BTIG’s reevaluation of its price target while maintaining its positive outlook on the company’s fundamentals and growth trajectory.
In other recent news, DoorDash has launched a drone delivery service in collaboration with Flytrex in the Dallas-Fort Worth area. This service, which follows a successful pilot program, is currently available to over 30,000 households, allowing customers to order food from various local and national restaurants directly through the DoorDash app. Meanwhile, Raymond (NSE:RYMD) James upgraded DoorDash’s stock rating from Outperform to Strong Buy, citing underappreciated synergies from its acquisition of Deliveroo. The firm forecasts significant EBITDA accretion in the coming years due to these synergies. Additionally, Citizens JMP raised its price target for DoorDash to $235, highlighting the company’s new AI-powered advertising tools and acquisition of Symbiosys. BofA Securities also increased its price target to $245, following DoorDash’s announcement of substantial updates to its advertising platform. These developments reflect DoorDash’s strategic focus on expanding its advertising revenue and enhancing profitability through innovative solutions.
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