JPMorgan upgrades DoorDash on expanded global reach from M&A

Published 14/10/2025, 15:46
© Reuters.

Investing.com -- JPMorgan upgraded DoorDash to Overweight from Neutral, saying recent acquisitions have expanded the food delivery company’s addressable market and could drive faster growth in coming years.

The brokerage lifted its price target to $325 for December 2026 from $175 for December 2025 before a period of restriction, and noted the stock has surged about 63% this year.

JPMorgan said DoorDash’s purchase of Deliveroo extends its footprint into nine new markets across Western Europe and the Middle East, adding about 7 million monthly active users and exposure to over 700000 businesses.

While Deliveroo operates in competitive markets against Uber and Just Eat Takeaway, JPMorgan expects DoorDash to reinvest profits aggressively in customer acquisition and subscriptions to accelerate growth.

Deliveroo’s CEO role will be taken over by Wolt’s Miki Kuusi, which the brokerage said should smooth integration and limit concerns about U.S. management bandwidth. It added that synergies from the deal could lift Deliveroo’s growth trajectory from about 9% to double digits in the medium term.

DoorDash has also expanded into new verticals, adding grocery giant Kroger’s 2,700 stores to its platform and rolling out fulfillment services through DashMart locations. JPMorgan said this positions DoorDash to lead in U.S. non-restaurant delivery volumes this year.

Advertising remains another growth lever, with DoorDash exiting 2024 at a $1 billion annualized run rate. Combined with Deliveroo’s ads business, monetization could reach $3 billion in revenue by 2027, contributing more than $2 billion in EBITDA, the bank estimated.

JPMorgan expects DoorDash gross order value to grow about 17% annually from 2025 to 2030, with EBITDA compounding at 27%. It said the stock warrants a premium valuation to Uber given faster expected cash flow growth and fewer risks from autonomous ride-hailing.

Shares of DoorDash are up about 63% in 2025.

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