Oil prices hold sharp losses with focus on secondary India tariffs
Investing.com -- Jefferies downgraded DoorDash (NASDAQ:DASH) to Hold from Buy warning that much of the company’s growth potential is now reflected in its stock price after a 45% year-to-date rally.
The brokerage said it expects DoorDash’s EBITDA to double over the next two years, supported by growth in advertising and shrinking losses in non-core areas such as international markets and grocery delivery.
“We also think a recent ramp in affordability initiatives could limit upside to take rate,” analyst said.
However, analysts argued that these gains may not be enough to justify further outperformance without assigning “optimistic multiples” to the company’s newer ventures.
While DoorDash continues to deliver peer-leading profit growth, Jefferies forecasts a 36% annual EBITDA growth rate from 2025 to 2027, the firm flagged signs of a maturing business.
The company’s take rate, or the cut it earns from orders, rose just 8 basis points in the latest quarter, the smallest increase since the pandemic.
Jefferies said ongoing investments in affordability, like DashPass, could limit further upside.
The firm raised its price target on the stock to $250 from $235 but said the current valuation, trading at a 120% premium to the broader internet sector, already bakes in strong execution.
At that level, Jefferies estimates DoorDash is trading at 29 times 2026 EBITDA.
“Our profit decomposition supports upside to cons and peer-leading EBITDA growth, but likely not enough to justify continued outperformance without assigning optimistic multiples to DASH’s non-core businesses,” analysts said.