DoorDash stock rating reiterated at Market Outperform by JMP

Investing.com - Citizens JMP has reiterated its Market Outperform rating on DoorDash Inc. (NASDAQ:DASH) with a price target of $335.00. The company has demonstrated strong performance with 23.78% revenue growth and maintains profitability over the last twelve months, according to InvestingPro data.

The research firm maintained its positive outlook on the food delivery platform, highlighting the potential impact of autonomous delivery technology on the company’s operations. This optimism is reflected in the market, with DoorDash showing a remarkable 92% return over the past year and maintaining strong financial health with a 2.07 current ratio.

JMP noted that "Autonomy could significantly lower the variable cost of delivery, which would likely further accelerate adoption for DoorDash (DASH, MO, $335 PT)."

The firm’s analysis suggests that advancements in autonomous delivery could create a meaningful cost advantage for DoorDash in its delivery operations.

The $335 price target represents the firm’s view on DoorDash’s potential upside as the company continues to develop and potentially implement autonomous delivery solutions.

In other recent news, DoorDash is undergoing a $3.9 billion acquisition of Deliveroo, which will be reviewed by the European Union under its simplified merger procedure. This merger values Deliveroo at approximately 2.9 billion pounds, marking a significant move in the meal delivery sector. Additionally, DoorDash has partnered with Ace Pickleball Club to offer on-demand delivery services to pickleball players across the United States, becoming the club’s official delivery and pickup platform. In collaboration with McDonald’s, DoorDash has launched a direct ordering system on the McDonald’s website, allowing customers to place delivery orders without app downloads or account creation. DoorDash is also expanding its partnership with RELEX Solutions to improve inventory management at its DashMart fulfillment centers, leveraging AI-driven supply chain tools. Meanwhile, Susquehanna has raised its price target for DoorDash to $300, citing a 23% year-over-year growth in gross order value, which surpassed estimates by 3%. This growth also included a 20% increase in order growth, exceeding analyst expectations by 2% and consensus by 1%. These developments highlight DoorDash’s strategic efforts to enhance its market presence and operational capabilities.

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