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Investing.com - Roth/MKM has raised its price target on DoorDash Inc. (NASDAQ:DASH) to $265 from $225 while maintaining a Neutral rating on the stock, according to a research note released Thursday. The stock currently trades at $274.71, having delivered an impressive 112% return over the past year. According to InvestingPro analysis, the stock is trading near its 52-week high with strong momentum.
The price target adjustment follows DoorDash’s second-quarter earnings report, which exceeded expectations and came in at the high end of the company’s guidance. The stock was indicated up approximately 8.5% in after-hours trading as of 8 p.m. ET following the results. InvestingPro data shows the company maintains strong financial health with a "GREAT" overall score and holds more cash than debt on its balance sheet.
DoorDash also provided third-quarter gross order value (GOV) outlook above market expectations, with adjusted EBITDA midpoint exceeding consensus estimates. The company demonstrated strong consumer behavior and improvements to affordability and selection in both U.S. and international markets.
Roth/MKM analyst Rohit Kulkami based the new price target on a multiple of 28 times the firm’s estimated 2026 EBITDA for DoorDash. The revised valuation reflects the company’s strong fundamentals that were "in full display" during the second quarter.
Despite the positive results, the research firm maintained its Neutral stance, noting there are "unanswered questions around the Deliveroo (OTC:DROOF) acquisition that weigh on perception of DASH’s margin philosophy." With a P/E ratio of 300 and high EBITDA valuation multiple, InvestingPro analysis suggests the stock is currently overvalued. Subscribers can access 15+ additional ProTips and a comprehensive research report for deeper insights into DoorDash’s valuation and growth prospects.
In other recent news, DoorDash has reported strong financial performance, prompting several analysts to raise their price targets for the company. BMO Capital increased its price target to $288, citing a 3% beat in gross order value that led to a 3.7% and 2.7% increase in revenue and adjusted EBITDA, respectively, for the second quarter of 2025. Needham raised its target to $300, highlighting DoorDash’s accelerating growth and potential for margin expansion. UBS set a new target of $280, noting strong topline growth trends and third-quarter guidance that challenge the belief that food delivery services will soon reach their market limit. Wells Fargo (NYSE:WFC) also raised its target to $280, pointing to a promising growth outlook in DoorDash’s core U.S. market, driven by increased DashPass membership and expansion into new areas beyond restaurant delivery. Wolfe Research set the highest target at $310, following a "clean beat and raise" quarter, emphasizing DoorDash’s solid execution and improving unit economics. These developments reflect a broad consensus among analysts about DoorDash’s positive growth trajectory and financial health.
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