CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We up our 12-month target $10 to $110, on a P/E of 31x our ’25 EPS view, above peers to reflect financial strength (net cash of $3.9B) and higher growth. We lift our ’24 EPS view to $2.71 from $2.41 and ’25’s to $3.54 from $3.23. Doordash, Inc. (NASDAQ:DASH) posted Q4 adjusted EBITDA of $363M vs. $117M, well above the $356M consensus, on sales growth of 27% that also topped estimates. Growth was driven by a 22% increase in Marketplace GOV and a 23% rise in total orders to 574M. We are encouraged by accelerating growth across nearly all businesses despite macroeconomic uncertainty, highlighting the stickiness of DASH’s ecosystem. We remain optimistic on DASH given high growth potential from DashPass and Wolt+ subscriptions (+18M members in ’23 from 15M in ’22) as well as investments in grocery, retail, and international expansion. Efficiency gains and disciplined cost management (GAAP sales and marketing up just 7% Y/Y, +2% Q/Q) should support FCF growth (+$1B in ’24), but we remain wary on soft consumer spend and fierce competition.