DoorDash stock target raised to $215 by Raymond James

On Wednesday, Raymond (NSE:RYMD) James increased the price target for DoorDash Inc. (NASDAQ:DASH) to $215 from the previous $170, while maintaining an Outperform rating on the shares. The company, now valued at over $80 billion, has seen its stock surge 63% over the past year, trading near $193. The firm’s analyst highlighted DoorDash’s strong performance, noting the company’s successful beat and its continued impressive execution. The analyst praised DoorDash for reinvesting efficiency gains back into the business, which has helped to improve scale. According to InvestingPro, the stock is currently trading near its 52-week high of $199.17.

The report emphasized DoorDash’s healthy user growth, with monthly active users (MAUs), DashPass subscriptions, and new verticals growing by 14%, 22%, and 42%, respectively. Additionally, DoorDash’s international business was noted to have grown by 40%, with a two-year compound annual growth rate (CAGR) exceeding 50%. The analyst was particularly encouraged by the profitability updates, which included total incremental margins of 5.6% and an EBITDA growth of over 50%. InvestingPro data shows impressive revenue growth of 24.56% in the last twelve months, with analysts expecting continued sales growth this year.

DoorDash’s financial results were reported to have surpassed expectations, with gross order volume (GOV) and EBITDA coming in 2% and less than 1% ahead, respectively. The first-quarter GOV outlook was positively received, and the EBITDA guidance for the year was set between $550 million to $600 million, which closely brackets the Street’s estimate of $583 million. Analyst consensus remains bullish, with targets ranging from $138 to $240 per share. The analyst also noted the positive commentary around Dasher supply and the confidence expressed by DoorDash regarding improvements in international markets and new business verticals.

The analysis by Raymond James suggests that DoorDash is positioned for continued growth, with untapped profit potential in international markets and new verticals that are expected to follow the progression of the U.S. restaurant business. The company’s ability to maintain a healthy growth trajectory and its positive outlook for the first quarter were key factors in the firm’s decision to raise the price target. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading above its intrinsic value. Subscribers can access 12+ additional ProTips and a comprehensive Pro Research Report that provides deep insights into DoorDash’s financial health, growth prospects, and valuation metrics.

In other recent news, DoorDash Inc. has been highlighted by several analytical firms following its recent financial performance. BofA Securities, for instance, raised the company’s stock price target from $205 to $245, acknowledging DoorDash’s gross order value (GOV), revenue, and EBITDA figures that met or surpassed market expectations. JPMorgan also increased DoorDash’s stock target to $205, citing confidence in the company’s growth and profitability. The firm noted DoorDash’s record 42 million Monthly Active Users (MAUs) and its expanding services beyond restaurant delivery.

BTIG analysts, in turn, raised their outlook on DoorDash, increasing the price target to $225 from $200, impressed by the company’s robust growth and margin performance. Goldman Sachs also adjusted its outlook on DoorDash, raising the price target to $212, focusing on the company’s progress in expanding its platform beyond restaurant delivery. Lastly, JMP Securities raised their price target for DoorDash to $225, highlighting the company’s consistent top-line growth and potential for EBITDA compounding. These are all recent developments for DoorDash, reflecting positive market sentiment towards the company’s financial performance and future prospects.

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