Fubotv earnings beat by $0.10, revenue topped estimates
Investing.com - RBC Capital raised its price target on DoorDash Inc. (NASDAQ:DASH) to $300 from $230 on Thursday, while maintaining an Outperform rating on the food delivery company’s shares. The stock, currently trading at $271.76, has already delivered an impressive 53.85% return year-to-date, according to InvestingPro data.
The investment firm cited DoorDash’s latest quarterly results, which exceeded expectations across "virtually every metric." RBC noted that the company’s third-quarter guidance also came in ahead of Wall Street consensus estimates. The company’s strong performance is reflected in its robust revenue growth of 23.78% and healthy gross profit margin of 51.04%.
According to RBC Capital, DoorDash’s core U.S. restaurant business continues to improve with "broad acceleration," despite being the most mature segment of the company’s operations. The firm highlighted that management continues to invest in this segment, which it described as "the biggest & most profitable part of the business."
RBC also pointed to strong growth in DoorDash’s new verticals with improving unit economics, while noting that the company’s advertising business remains "intentionally under-monetized," suggesting potential for future revenue growth.
The firm expressed optimism about DoorDash’s upcoming integration of Deliveroo (OTC:DROOF) this fall, which it believes offers "a new competitive mountain to climb in Europe" where management has demonstrated a strong track record.
In other recent news, DoorDash Inc. reported second-quarter results that surpassed expectations, with gross order value (GOV) exceeding the high end of the company’s guidance. This strong performance led several firms to adjust their price targets for DoorDash. Cantor Fitzgerald increased its target to $330, citing the company’s accelerating growth in the core U.S. marketplace. BTIG also raised its target to $315, highlighting DoorDash’s increasing order volume and average selling price, driven by strong cohort behavior and international expansion.
Stifel adjusted its price target to $239, noting that DoorDash’s EBITDA dollars exceeded guidance, while margins were in line with expectations. Truist Securities set its price target at $326, praising the company’s "stellar" second-quarter results and higher third-quarter guidance, supported by user and order growth. Roth/MKM increased its target to $265, maintaining a Neutral rating and noting that DoorDash’s earnings came in at the high end of expectations. These developments reflect a positive outlook from various analyst firms following DoorDash’s recent performance.
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