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Investing.com-- Analysts at BMO Capital Markets have increased their price target for DoorDash Inc (NASDAQ:DASH), citing better-than-expected user engagement and strong international growth.
DoorDash reported stronger-than-expected gross bookings for the fourth quarter of fiscal 2024 and an optimistic outlook for 2025, supported by rising order frequency, increasing monthly active users (MAUs), and international expansion, according to BMO Capital Markets.
The brokerage increased its price target to $240 from $180, reiterating an “Outperform” rating, highlighting the company’s ability to expand its market share, improve order frequency, and attract more active users.
BMO analysts noted that DoorDash’s MAUs reached 42 million in Q4, surpassing their 41 million estimate and marking a 14% year-over-year increase.
They believe the gap between the company’s 100 million annual users and its MAUs will narrow as customer engagement improves.
BMO has raised its 2025 and 2026 EBITDA estimates to $2.62 billion and $3.7 billion, respectively, from prior estimates of $2.61 billion and $3.5 billion.
International markets remain a key growth area, with DoorDash achieving all-time high MAUs and increasing its market share, analysts said.
BMO expects further gains as the company expands into additional cities. Grocery delivery also presents a major opportunity, with a $2 trillion total addressable market, BMO analysts wrote.
Analysts see Retail Media as another bright spot, as advertisers leverage DoorDash’s first-party data to improve return on ad spend.