Fiserv earnings missed by $0.61, revenue fell short of estimates
Investing.com - Goldman Sachs has reinstated coverage on DoorDash Inc. (NASDAQ:DASH) with a Buy rating and a price target of $315.00 following the completion of the company’s Deliveroo acquisition. The stock, currently trading at $258.15, has delivered an impressive 71% return over the past year, according to InvestingPro data.
The investment bank has updated its model to incorporate both core DoorDash operations (including Wolt) and the newly acquired Deliveroo business into its forecasts.
Goldman Sachs noted that standalone DoorDash has outperformed on Gross Order Value (GOV), with first-quarter actual results 0.4% above prior estimates and second-quarter results approximately 5% higher than expected.
Based on this performance, the firm has raised its core DoorDash GOV estimates by 5-10% for the 2025-2027 period.
Goldman Sachs expects DoorDash to invest in accelerating Deliveroo’s growth from high single digits currently to low-teens percentages, though this strategy will likely result in lower incremental EBITDA margins for the Deliveroo segment going forward.
In other recent news, DoorDash has seen several notable developments following its acquisition of Deliveroo. Earnings and revenue results are anticipated, with BTIG maintaining a Buy rating and a $315 price target, expecting the Deliveroo acquisition to significantly boost DoorDash’s gross order value. Truist Securities also raised its price target for DoorDash to $340, citing growth in U.S. gross order value that has outpaced expectations for the third quarter. Meanwhile, Stifel adjusted its price target to $255, maintaining a Hold rating as it awaits further insights on the Deliveroo acquisition’s impact.
Additionally, Barclays has reinstated coverage of DoorDash with an Equalweight rating and set a $272 price target, acknowledging the stock’s strong performance relative to the broader market. In contrast, a report from Culper Research alleged unauthorized worker practices at DoorDash, claiming a significant portion of deliveries might involve unauthorized workers. Despite these allegations, DoorDash’s stock experienced a slight rise, indicating investor confidence in the company’s trajectory. These recent developments highlight the dynamic environment surrounding DoorDash as it integrates Deliveroo and addresses ongoing challenges.
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