DoorDash stock price target raised to $275 from $260 at Raymond James

Investing.com - Raymond (NSE:RYMD) James maintained its Strong Buy rating on DoorDash Inc. (NASDAQ:DASH) while raising its price target to $275 from $260 on Monday. The stock, currently trading at $239.17, has delivered an impressive 125% return over the past year, according to InvestingPro data.

The firm built a detailed advertising revenue model after DoorDash disclosed that its ad business reached a $1 billion run-rate. Raymond James projects potential upside to approximately $3 billion in ad revenue by 2027, significantly above the Street’s estimate of $2.1 billion. This growth potential adds to DoorDash’s already strong performance, with revenue growing 23.35% in the last twelve months to $11.24 billion.

The analyst noted that DoorDash has launched nearly 10 new advertising innovations year-to-date, most in June, and recently acquired Symbiosys for off-site advertising capabilities. These developments could accelerate DoorDash’s advertising penetration in 2026 and 2027.

Key drivers for the firm’s optimistic outlook include automated and time-based bidding improving auction density, more robust full-funnel solutions including display and video campaigns, and enhanced customer targeting both on and off platform.

Raymond James maintains DoorDash as a top pick, citing underappreciated synergy opportunities from the ROO merger that could deliver mid-to-high teens EBITDA accretion in 2026 and 2027. InvestingPro analysis shows the company maintains strong financial health with a "GOOD" overall score, though current valuations suggest the stock may be trading above its Fair Value. Subscribers can access 15 additional ProTips and comprehensive valuation metrics in the Pro Research Report.

In other recent news, DoorDash is set to release its second-quarter earnings, with several analysts expressing optimism about the company’s financial performance. Bernstein has raised its price target for DoorDash to $265, citing confidence in the company’s fundamentals and anticipating strong growth in Gross Order Value (GOV). Benchmark also increased its price target to $260, expecting DoorDash to meet the high end of its guidance for gross order value and adjusted EBITDA. Loop Capital has set an even higher price target of $305, highlighting DoorDash’s long-term growth potential and expansion into restaurant operations. Meanwhile, Citizens JMP raised its target to $250, noting multiple growth levers and potential margin expansion. On the other hand, Jefferies downgraded DoorDash from Buy to Hold, despite raising its price target to $250, expressing concerns about the sustainability of current valuations. The pending acquisition of Roofoods (Deliveroo (OTC:DROOF)) and the recent acquisition of SevenRooms are also seen as potential growth drivers, although their exact financial impacts remain unspecified. These developments reflect a mix of optimism and caution among analysts regarding DoorDash’s future prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.