DoorDash

DoorDash (DASH) is likely to maintain its market leadership in the face of the collaboration between Uber Technologies’ (UBER) Uber Eats and Instacart (CART), Deutsche Bank said Wednesday in a note. Uber Eats and Instacart on Tuesday announced they are integrating UberEats’ restaurant offerings into the Instacart platform. While this may pose some challenges to DoorDash’s primary operations, “we believe that the ultimate orders at risk via this partnership is at most” 4% to 7% of Wall Street’s 2024 and 2025 estimates,” Deutsche Bank said. “If we assume that DoorDash successfully holds on to some percentage of these orders, the potential share loss implications are even lower,” Deutsche Bank said. Deutsche Bank has a buy rating on DoorDash with a price target of $155. DoorDash shares fell 3.7% in recent trading Wednesday. Uber slumped 8.5% after posting a surprise Q1 loss, and Instacart dropped 1.9%.

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.

Deutsche Bank analyst Lee Horowitz maintains DoorDash with a Buy and raises the price target from $140 to $155.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We lift our 12-month target to $158 from $110 on a P/E of 40x our 2025 EPS view, above peers, reflecting financial strength (net cash of $4B) and higher growth. We lift our 2024 EPS to $2.75 from $2.71 and 2025’s to $3.96 from $3.54. We upgrade our view on DASH due to our increased conviction in the company’s accelerating growth trajectory across almost all of its business segments, driven by stickiness of its delivery ecosystem. We remain positive given high growth potential from subscription services (+18M members in 2023 vs. 15M in 2022) and expansion into grocery/retail/international boosting Marketplace GOV and orders (+22% GOV and +23% orders in Q4). We also see a positive secular trend emerging within the gig economy, thanks to ample supply of

DoorDash appears to have spent at least $600 million last year on new verticals and international business, while maintaining healthy core profitability, JMP Securities analysts say in a research note. They started sifting through the company’s disclosures in recent years to break out the contributions of the core U.S. restaurants business and other operations and say $1.8 billion in EBITDA is achievable in 2024 with a potential $2.6 billion in 2025. Both estimates are above the FactSet consensus. “With better visibility into core economics, we raise our DoorDash price target to $160 from $130 prior,” the analysts add. DoorDash is off 1% to $138.84

DoorDash (DASH) and Alphabet’s (GOOG) Wing subsidiary launched their drone delivery partnership in the US, starting the service with their first restaurant partner Wendy’s in Christiansburg, Virginia, the partners said Thursday. From Thursday, customers with eligible addresses who will order from the specific Wendy’s branch partner will have the option to choose drone delivery, according to the companies. DoorDash and Wing said they plan to explore expanding the service to other US cities later this year.

DoorDash (DASH) has the potential to stabilize profitability with entry in new verticals and international markets, RBC Capital Markets said in a note Monday. DoorDash’s new verticals and international segment may have peaked at losses of around $1.3 billion annually, RBC added. The firm expects that while the company’s core business investment may be minimal, new vertical losses are unlikely to increase year-over-year. The investment firm said it previously underestimated the company’s order growth resilience primarily because of the frequency “which should continue to be a multi-year mid-to-high-teens grower.” DoorDash’s potential partnerships, particularly with LYFT (LYFT), could drive significant incremental orders and enhance its loyalty program, according to the note. The firm said consumer concerns and slow expansion into non-restaurant verticals remain a risk to the company’s growth with low likelihood and potential for upward estimate revisions. RBC raised DoorDash’s stock rating to outperform from sector perform and increased the

DoorDash (DASH) is expected to continue to deliver “peer-leading” and better-than-projected consumer spend and gross order value results across its platform, Morgan Stanley said in a note Thursday. The firm said it has confidence in the food delivery company’s forward gross order value and earnings before interest, taxes, depreciation, and amortization growth, backed by a “durable” restaurant business in the US. Morgan Stanley expects DoorDash to be GAAP profitable in 2024, which is likely to result in further shareholder interest, according to the note. The firm upgraded its rating on the DoorDash stock to overweight from equal-weight and raised its price target to $145 from $135. DoorDash shares were up 5.3% in recent trading.

By Emily Dattilo DoorDash stock has slipped since the food-delivery company reported earnings earlier this month, and Morgan Stanley thinks it’s time to buy. Analysts led by Brian Nowak upgraded the stock to Overweight from Equal Weight and raised their price target to $145 from $135 in a Thursday report titled “DASHing Growth and Profitability.” After posting mixed fourth-quarter results on Feb. 15, DoorDash shares have fallen 9.2% through Wednesday’s close, according to Dow Jones Market Data, but Morgan Stanley is optimistic. “On growth, the company continues to deliver peer-leading and better than expected consumer spend and gross order value (“GOV”) results across its expanding platform…and we see that continuing,” the analysts wrote. As of the fourth quarter, nearly half of the company’s monthly active users were DashPass subscribers, and subscribers tend to spend more than nonsubscribers, they explained. “We use this growing loyal (and more frequent) subscriber base to

Analysts say stock could eventually reach $175 When delivery app DoorDash Inc. reported quarterly earnings last week, investors raced to the exits. But Morgan Stanley analysts on Thursday said to buy the dip, arguing that the company’s restaurant, grocery and non-grocery delivery business still had plenty of room to grow. Analysts there upgraded the stock to overweight, their most positive rating, from equal-weight, and raised their price target to $145 from $135. And they said the stock could get to $175 if their profit expectations play out better than planned over the next few years. Shares of DoorDash (DASH) were up 5% on Thursday. “We see DASH’s core product addressing ($2.6 trillion) of offline spend across its U.S. restaurant, international restaurant and U.S. grocery / new vertical businesses,” Morgan Stanley said in a research note. “While not our base case, as a bull case, DASH’s emerging non-grocery retail business (delivering

DoorDash (NASDAQ:DASH) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 02/22/2024 21.32% Morgan Stanley $135 → $145 Upgrades Equal-Weight → Overweight 02/20/2024 2.07% Goldman Sachs $109 → $122 Maintains Neutral 02/20/2024 12.95% Susquehanna $110 → $135 Maintains Positive 02/16/2024 -16.33% Wells Fargo $105 → $100 Maintains Equal-Weight 02/16/2024 27.18% Mizuho $140 → $152 Maintains Buy 02/16/2024 8.77% JMP Securities → $130 Reiterates Market Outperform → Market Outperform 02/16/2024 -1.27% UBS $123 → $118 Maintains Neutral 02/16/2024 2.07% Goldman Sachs $109 → $122 Maintains Neutral 02/16/2024 8.77% RBC Capital $105 → $130 Maintains Sector Perform 02/16/2024 15.46% BMO Capital $120 → $138 Maintains Outperform 02/16/2024 -3.78% Wedbush $92 → $115 Maintains Neutral 02/16/2024 17.14% Oppenheimer $110 → $140 Maintains Outperform 02/16/2024 17.14% Truist Securities $130 → $140 Maintains Buy 02/06/2024 8.77% JMP Securities $113 → $130 Maintains Market Outperform 02/06/2024 11.28% Needham →

DoorDash (NASDAQ:DASH) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 02/20/2024 9.69% Goldman Sachs $109 → $122 Maintains Neutral 02/20/2024 21.38% Susquehanna $110 → $135 Maintains Positive 02/16/2024 -10.09% Wells Fargo $105 → $100 Maintains Equal-Weight 02/16/2024 36.67% Mizuho $140 → $152 Maintains Buy 02/16/2024 16.89% JMP Securities → $130 Reiterates Market Outperform → Market Outperform 02/16/2024 6.1% UBS $123 → $118 Maintains Neutral 02/16/2024 9.69% Goldman Sachs $109 → $122 Maintains Neutral 02/16/2024 16.89% RBC Capital $105 → $130 Maintains Sector Perform 02/16/2024 24.08% BMO Capital $120 → $138 Maintains Outperform 02/16/2024 3.4% Wedbush $92 → $115 Maintains Neutral 02/16/2024 25.88% Oppenheimer $110 → $140 Maintains Outperform 02/16/2024 25.88% Truist Securities $130 → $140 Maintains Buy 02/06/2024 16.89% JMP Securities $113 → $130 Maintains Market Outperform 02/06/2024 19.58% Needham → $133 Reiterates Buy → Buy 01/19/2024 -2% Roth MKM $92 →