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Investing.com - Truist Securities raised its price target on DoorDash Inc. (NASDAQ:DASH) to $272.00 from $230.00 on Tuesday, while maintaining a Buy rating on the food delivery company’s stock. The stock, which has delivered an impressive 132.5% return over the past year, is currently trading near its 52-week high of $250.71. According to InvestingPro analysis, the company is trading above its Fair Value.
The price target increase comes as Truist anticipates DoorDash will beat expectations in its upcoming second-quarter earnings report, scheduled for August 6, based on the firm’s analysis of Truist Card Data. The data indicates that growth in gross order value has tracked ahead of expectations for the second quarter, building on the company’s strong revenue growth of 23.35% over the last twelve months. InvestingPro subscribers have access to 15+ additional exclusive insights about DoorDash’s financial health and growth prospects.
The data also shows an acceleration in growth through July 23, with weekly active users outperforming peers in the second quarter. Truist attributes this momentum to management’s execution across customer acquisition, retention, order frequency, and average order value despite macroeconomic uncertainty.
DoorDash’s financial performance has enabled the company to expand internationally through its acquisition of Deliveroo (OTC:DROOF) and strengthen its merchant software tools with the purchase of SevenRooms.
These acquisitions are expected to expand DoorDash’s total addressable market and contribute to continued business momentum, according to Truist’s analysis.
In other recent news, DoorDash has seen a series of upward revisions to its stock price target by various analyst firms. Raymond (NSE:RYMD) James raised its price target to $275, highlighting the potential growth of DoorDash’s advertising business, which has reached a $1 billion run-rate. Bernstein increased its target to $265, citing strong fundamentals and anticipated growth in Gross Order Value. Benchmark also raised its target to $260, expecting DoorDash’s second-quarter results to meet the high end of guidance. Loop Capital set a new target of $305, viewing DoorDash as a key player in local commerce with significant growth opportunities. Citizens JMP adjusted its target to $250, expressing confidence in DoorDash’s ability to expand margins through its core U.S. restaurant business. These developments reflect a positive outlook among analysts regarding DoorDash’s growth potential and financial performance.
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