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Investing.com --Jefferies upgraded Doordash to Buy, saying the food delivery company has reset expectations in a way that gives it room to beat forecasts while stepping up long term investment.
The brokerage said Doordash’s 2026 outlook, which includes several hundred million of additional spending, has lowered prior investor assumptions for earnings.
Jefferies said the company now expects at least $3.5 billion of EBITDA in 2026 including Deliveroo, down from earlier expectations of $4 billion to $4.5 billion. Consensus has already fallen to $3.65 billion.
The firm said the moderation helps Doordash invest in new products while maintaining slight margin expansion in its legacy business. Jefferies pointed to faster growth in US restaurant delivery over the past four quarters, saying the acceleration strengthens the case for Doordash’s most profitable segment.
Jefferies said the company’s growing advertising business remains an underappreciated support for margins. The firm estimated that ad revenue growth alone offsets about $200 million of incremental investment in 2026, with further gains coming from efficiency improvements and cost leverage in the US restaurant unit.
The brokerage lifted its 2026 and 2027 EBITDA estimates by 5% and 6%, helped by higher gross order value in US restaurants. It raised its price target to $260 dollars from $220.
Jefferies said Doordash’s ability to keep US restaurant growth at a three year high, supported by higher adoption of DashPass and increased engagement from older customer cohorts, suggests penetration of delivery apps remains low.
Delivery accounts for 13% of off premise restaurant spending, compared with an average of 23% for ecommerce, the firm said.
The brokerage said the stock’s 20% drop in the past month has made the company’s growth algorithm and execution look underappreciated, setting up what it views as a pattern of under promising and over delivering.