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Investing.com - Wells Fargo (NYSE:WFC) raised its price target on DoorDash Inc. (NASDAQ:DASH) to $280.00 from $239.00 on Thursday, while maintaining an Equal Weight rating on the food delivery company’s stock. The stock, currently trading at $258.08 with a market capitalization of $109.36 billion, has delivered an impressive 112% return over the past year and is trading near its 52-week high.
The investment bank cited a "long runway of growth" in DoorDash’s core U.S. market, driven by increasing DashPass membership penetration and expansion into new verticals beyond restaurant delivery.
Wells Fargo expressed surprise at the "durability" of DoorDash’s core U.S. restaurant business, noting accelerating growth in both new users and DashPass memberships, with new U.S. user cohort growth accelerating each month of the second quarter.
The firm raised its 2025 and 2026 gross order value (GOV) estimates by 1% and 4% respectively, reflecting the accelerating user growth and third-quarter guidance that exceeded expectations.
Wells Fargo also increased its 2025 and 2026 EBITDA estimates by 2% and 5%, though it expects DoorDash to maintain an "elevated pace of investments" across its portfolio, with the new price target based on 25 times the firm’s 2027 EBITDA estimate of $4.7 billion.
In other recent news, DoorDash Inc. reported second-quarter 2025 earnings that significantly exceeded market expectations. The company achieved an earnings per share of $0.65, surpassing the forecast of $0.43, and reported revenue of $3.3 billion, outpacing the anticipated $3.16 billion. This strong performance was highlighted by accelerated order growth of 20% year-over-year, with gross order value exceeding guidance by $544 million and EBITDA surpassing expectations by $5 million. Following these results, Wolfe Research raised its price target on DoorDash to $310, maintaining an Outperform rating, citing improved user engagement and unit economics. Raymond (NSE:RYMD) James also increased its price target to $325, attributing the upgrade to the success of DoorDash’s loyalty programs like DashPass and Wolt+. Additionally, Citizens JMP set a new price target of $335, maintaining a Market Outperform rating and acknowledging the company’s robust order growth. These recent developments reflect DoorDash’s strong execution and strategic initiatives.
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