DoorDash stock price target raised to $310 from $240 at Wolfe Research

Investing.com - Wolfe Research raised its price target on DoorDash Inc. (NASDAQ:DASH) to $310.00 from $240.00 on Thursday, while maintaining an Outperform rating on the food delivery company’s stock. The new target represents potential upside from the current price of $258.08, with the stock trading near its 52-week high of $259.87.

The upgrade follows what Wolfe Research described as a "clean beat and raise" quarter, with DoorDash benefiting from "solid ongoing execution" that has led to increased user stickiness, growing frequency across different user cohorts, and improving unit economics. According to InvestingPro data, the company maintains a GREAT financial health score, with revenue reaching $11.24 billion and showing robust growth of 23.35% over the last twelve months.

The firm noted that Monthly Active Users (MAUs) and DashPass/Wolt+ memberships accelerated, while frequency and unit economics continued to improve. U.S. restaurant business showed continued strength, contributing to healthy topline growth trends.

Wolfe Research highlighted that DoorDash’s third-quarter outlook points to another acceleration in Gross Order Value (GOV), with the high end showing 23.5% year-over-year growth. The midpoint of the EBITDA guidance suggests approximately a 2% raise versus Street models despite a wider range of $100 million compared to the prior $50 million.

International unit economics continue to improve both sequentially and year-over-year, supported by enhancements in Dasher efficiency, which was identified as a key component of Wolfe Research’s thesis heading into fiscal year 2025. The company’s strong execution is reflected in its market performance, with the stock delivering an impressive 112% return over the past year. For deeper insights into DoorDash’s valuation and growth metrics, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks.

In other recent news, DoorDash Inc. reported its second-quarter 2025 earnings, surpassing market expectations with an earnings per share of $0.65, compared to the projected $0.43. The company’s revenue also exceeded forecasts, reaching $3.3 billion against an anticipated $3.16 billion. Additionally, DoorDash’s gross order value exceeded the high end of its guidance by $544 million, while EBITDA was $5 million above expectations. Following these results, Citizens JMP raised its price target for DoorDash to $335 from $250, maintaining a Market Outperform rating. Similarly, Raymond (NSE:RYMD) James increased its price target to $325 from $275, continuing to rate the company as a Strong Buy. The investment firms attributed these upgrades to DoorDash’s strong core execution and the growth of its loyalty programs, including DashPass and Wolt+. These developments highlight the company’s robust performance in the recent quarter.

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