Truist Securities has updated its price target for DoorDash Inc. (NASDAQ: NASDAQ:DASH), raising it from $150.00 to $170.00 while maintaining a Buy rating on the stock.
The firm's decision comes amid DoorDash's notable year-to-date (YTD) performance, which has seen its shares increase by 55%, outpacing the IDM Group's 21% rise.
The optimism from Truist Securities stems from DoorDash's positioning within the Internet Group, which the firm believes is advantageous for the company's long-term success.
Despite the impact of Hurricane Helene on demand during the last week of the third quarter of 2024, DoorDash's US Marketplace Gross Order Value (GOV) is tracking closely with the consensus.
The analyst noted DoorDash's comparative success in user growth against its US Delivery peers during the quarter. Additionally, the company reportedly maintained a stable average order value (AOV) and achieved higher order frequency, which are key factors contributing to improved unit economics for the company.
In other recent news, DoorDash has been the focus of numerous financial firms. Benchmark has raised its price target for DoorDash to $173, citing the company's growth outlook, while Oppenheimer increased its target to $160 following a positive consumer spending trend survey. KeyBanc upgraded DoorDash from Sector Weight to Overweight, setting a new price target of $177, and BTIG upgraded shares from Neutral to Buy with a price target of $155.
Raymond James initiated coverage on DoorDash with an Outperform rating, suggesting potential for profitability growth in the company's international and new market segments.
In addition to these financial developments, DoorDash has expanded its partnership with Wegmans Food Markets, offering grocery delivery from all Maryland Wegmans locations and planning further expansion into several other states. This move is part of DoorDash's rapidly growing grocery segment and aligns with Wegmans' commitment to convenient and healthy living.
As DoorDash prepares to report its third-quarter earnings, analysts are looking for management's commentary on several key areas, including the potential for advertising to significantly contribute to the company's revenue take rate over the next twelve months.
InvestingPro Insights
DoorDash's strong market performance, as highlighted by Truist Securities, is further supported by real-time data from InvestingPro. The company's revenue growth remains robust, with a 25.02% increase in the last twelve months as of Q2 2024, reaching $9.61 billion. This aligns with the InvestingPro Tip that analysts anticipate sales growth in the current year.
The stock's impressive performance is evident in its 109.24% price total return over the past year, corroborating the InvestingPro Tip of "High return over the last year." Additionally, DoorDash is trading near its 52-week high, with its current price at 100% of that peak, suggesting strong investor confidence.
While the company's growth trajectory is positive, it's worth noting that DoorDash is not yet profitable over the last twelve months, as indicated by another InvestingPro Tip. However, analysts predict the company will be profitable this year, which could further boost investor sentiment.
For readers interested in a deeper analysis, InvestingPro offers 13 additional tips for DoorDash, providing a more comprehensive view of the company's financial health and market position.
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