CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We cut our 12-month target $18 to $140, on a P/E of 40x our ’25 EPS view, above peers to reflect financial strength (net cash of $4B). We lift our ’24 EPS view to $2.86 from $2.75 and cut ’25’s to $3.50 from $3.96. DASH posted Q1 adjusted EBITDA of $371M vs. $204M, surpassing the $365M consensus. Top-line growth of +23% also exceeded expectations, fueled by a 21% rise in Marketplace GOV and a 21% increase in total orders to 620M. Key drivers include the continued momentum of DashPass, Dash’s subscription offering, and the rapid expansion of its grocery vertical (+100% in the U.S.). Looking ahead, we remain bullish on DASH given the substantial growth runways across its offerings, supported by secular tailwinds in the gig economy. Furthermore, DASH’s disciplined cost management approach, evidenced by only a 2% Y/Y increase in GAAP sales and marketing expenses (up 10% Q/Q), should enable strong free cash flow growth (estimated at $1.6B+ in 2024), even amidst potential softness in the U.S. restaurant industry.