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Investing.com - Raymond (NSE:RYMD) James upgraded DoorDash Inc. (NASDAQ:DASH) stock rating from Outperform to Strong Buy on Monday, while raising its price target to $260.00 from $215.00. The upgrade comes as DoorDash shows strong momentum, with the stock delivering a 93% return over the past year and trading near its 52-week high of $223.81. According to InvestingPro analysis, the company maintains a "GOOD" financial health score.
The upgrade follows Raymond James’ bottom-up merger analysis of DoorDash’s acquisition of Deliveroo (OTC:DROOF) (ROO), with the firm stating that synergy potential between the companies is currently underappreciated by the market.
Raymond James forecasts mid-teens EBITDA accretion in 2026 and high-teens accretion in 2027, which it calculates would lower the 2027 estimated EV/EBITDA multiple by 2 turns and equate to an EV/E/G multiple of less than 1x.
The firm cited four key factors supporting its new price target: untapped Deliveroo synergies, DoorDash’s growing emphasis on advertising with recent M&A activity and a $1 billion run-rate disclosure, consistent management execution, and eventual autonomous delivery tailwinds.
Raymond James noted that its comprehensive merger model, containing over 200 lines of analysis, is available upon request for investors seeking additional details on the projected financial impacts of the acquisition.
In other recent news, DoorDash has made significant strides in expanding its advertising platform, revealing new AI-powered tools and acquiring the ad tech platform Symbiosys for $175 million. This move is part of DoorDash’s strategic focus on enhancing its advertising revenue stream, which has reached an annualized run rate of over $1 billion. BofA Securities responded to these developments by raising DoorDash’s price target to $245, citing the substantial updates to its advertising platform. Similarly, Citizens JMP increased its price target for DoorDash to $235, highlighting the company’s launch of new AI advertising tools and the acquisition of Symbiosys. The investment firm also expressed optimism about DoorDash’s future profitability, particularly in its advertising segment. Meanwhile, JMP Securities maintained its Market Outperform rating for DoorDash, noting the company’s potential to leverage its first-party data for advertising revenue growth. Additionally, Coco Robotics, a startup collaborating with DoorDash, raised $80 million in new funding, further indicating the evolving landscape of urban delivery solutions. These developments underscore DoorDash’s ongoing efforts to diversify and strengthen its business model beyond traditional food delivery services.
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