UBS raises DoorDash stock price target to $280 on strong growth trends

Published 07/08/2025, 11:46
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Investing.com - UBS raised its price target on DoorDash Inc. (NASDAQ:DASH) to $280.00 from $260.00 while maintaining a Neutral rating. The stock, currently trading at $258.08 and near its 52-week high, has delivered an impressive 112% return over the past year, according to InvestingPro data.

The firm cited strong topline growth trends in the first half of 2025 and third-quarter guidance as challenging the thesis that food delivery services would quickly reach a penetration ceiling. UBS noted that DoorDash continues to outperform Uber (NYSE:UBER) Eats in topline growth, with InvestingPro data showing robust revenue growth of 23.35% and an EBITDA of $530 million in the last twelve months.

UBS expressed concerns about mixed commentary on cost trendlines and limited visibility into business lines under the DoorDash umbrella. The firm also mentioned that DoorDash’s guidance philosophy was called into question after a second-quarter 2025 adjusted EBITDA beat.

The price target increase reflects UBS’s updated forecasts, with 2026 and 2027 estimated adjusted EBITDA rising by approximately 11% and 16% respectively. This drove the $20 increase in the price target to $280.

UBS maintained its Neutral rating due to potential for slower adjusted EBITDA accrual than its base forecast as new cost centers come online when the ROO and SevenRooms transactions close, resulting in what the firm described as a "narrow risk/reward skew at 1.0x." Based on InvestingPro’s Fair Value analysis, the stock appears overvalued at current levels, with 15+ additional key insights available to subscribers.

In other recent news, DoorDash Inc. reported its second-quarter 2025 earnings, which exceeded market expectations. The company achieved an earnings per share of $0.65, surpassing the projected $0.43, and reported revenue of $3.3 billion, higher than the anticipated $3.16 billion. This positive financial performance was accompanied by a 20% year-over-year order growth, with gross order value and EBITDA both exceeding the high end of company guidance. Following these results, several analyst firms adjusted their price targets for DoorDash. Citizens JMP raised its target to $335, citing strong order growth and financial results. Wolfe Research increased its target to $310, highlighting DoorDash’s effective execution and improved user engagement. Raymond (NSE:RYMD) James set a new target of $325, noting the impact of loyalty programs like DashPass. Additionally, Wells Fargo (NYSE:WFC) raised its price target to $280, emphasizing growth prospects in the U.S. market.

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