Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Susquehanna raised its price target on DoorDash Inc. (NASDAQ:DASH) to $300 from $235 while maintaining a Positive rating on the stock. According to InvestingPro data, the stock has delivered an impressive 109% return over the past year, though current valuations suggest the stock is trading above its Fair Value.
The revision follows DoorDash’s stronger-than-expected gross order value (GOV) of $24 billion, representing 23% year-over-year growth and exceeding estimates by 3%. Order growth reached 20%, surpassing analyst expectations by 2% and consensus by 1%. This aligns with the company’s robust revenue growth of 23.78% and healthy gross profit margin of 51%.
DoorDash reported continued momentum in its grocery segment during the second quarter, noting that new verticals grew faster than its core restaurant business. The company achieved record highs in both user growth and order frequency, along with increasing basket sizes as consumers expanded their use cases. With a strong current ratio of 2.07 and more cash than debt on its balance sheet, DoorDash appears well-positioned for continued expansion. For detailed insights and 15 additional ProTips, visit InvestingPro.
The company’s take rate of 13.5% exceeded estimates by approximately 20 basis points and consensus by 10 basis points. This improvement stemmed from enhanced logistics efficiency, growing advertising revenue, and reduced refunds as a share of GOV, partially offset by a greater mix shift toward lower-take-rate categories.
Average order value reached $31.86, 1% above estimates, though DoorDash has previously cautioned that this metric can be misleading since orders through its Drive service are fully counted in orders but not entirely in GOV.
In other recent news, DoorDash has seen a series of analyst upgrades following its strong quarterly earnings report. Bernstein SocGen Group raised its price target for DoorDash to $310 from $265, highlighting the company’s performance that exceeded market expectations and predicting continued strength into the next quarter. Similarly, RBC Capital increased its price target to $300 from $230, noting that DoorDash’s results surpassed expectations on almost every metric, with guidance ahead of Wall Street estimates. KeyBanc also raised its target to $325, attributing the increase to improvements in consumer experience and reduced delivery times that positively impacted second-quarter results. Piper Sandler adjusted its price target to $290 from $210, describing the company’s second-quarter results as "impressive" with accelerating orders and pricing. Benchmark raised its price target to $315 from $260, citing a steady quarter with healthy gross order value and an uptick in average order value. These developments reflect a broad consensus among analysts on DoorDash’s positive trajectory.
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