Guggenheim initiates DoorDash stock with Buy rating, $330 price target

Investing.com - Guggenheim initiated coverage on DoorDash Inc. (NASDAQ:DASH), currently trading near $270.54, with a Buy rating and a price target of $330.00 on Wednesday. According to InvestingPro data, the company maintains excellent financial health with a "GREAT" overall score.

The research firm cited DoorDash’s ability to extend its delivery leadership position as a key factor in its bullish outlook. Guggenheim also expects the company’s Grocery & Retail investments to transform from a current profit drag to a positive contributor over the intermediate to long term.

Guggenheim projects DoorDash’s Marketplace Gross Order Value growth will outpace the overall delivery market in coming years, driven by volume increases. The firm believes the company’s goal of becoming the local "Everything Store" underpins its current investment strategy.

The recent Deliveroo acquisition, which closed on September 30, is expected to provide a mid-single-digit tailwind to 2026 Marketplace GOV growth. Guggenheim views this international expansion opportunity as underappreciated by consensus estimates.

The $330 price target represents a multiple of 36 times Guggenheim’s 2027 enterprise value to operating income before depreciation and amortization estimate, reflecting a 33% premium to high-growth internet peers. DoorDash ranks as Guggenheim’s second pick in its gig economy coverage, behind Uber. For deeper insights into DoorDash’s valuation metrics and growth potential, access the comprehensive Pro Research Report available on InvestingPro.

In other recent news, DoorDash announced the completion of its acquisition of Deliveroo, following court approval under the UK Companies Act. This transaction, effective on October 2, was agreed upon by the boards of both companies. Additionally, DoorDash has entered a multi-year strategic partnership with Serve Robotics to deploy autonomous sidewalk delivery robots across the United States, starting in Los Angeles. This collaboration aims to expand to additional markets in the coming months.

In a related development, DoorDash unveiled Dot, an autonomous delivery robot designed for local commerce, capable of navigating bike lanes, roads, and sidewalks. The company also reported a 12.3% year-over-year growth in global daily active users, marking its slowest growth rate since September of the previous year. Analyst firm Citizens reiterated its Market Outperform rating for DoorDash, maintaining a price target of $335. These developments highlight DoorDash’s ongoing efforts to innovate in delivery technology and expand its market presence.

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