On Tuesday, Susquehanna maintained a Positive rating on DoorDash Inc. (NASDAQ:DASH) and increased the stock's price target to $135 from the previous target of $110. The adjustment follows DoorDash's recent earnings report, which revealed a solid quarter and provided guidance that analysts found generally constructive.
The company's recent performance has prompted Susquehanna to revise its 2024 revenue estimate upwards by 2% and its projections for EBITDA and EPS by 11%. The firm also introduced its 2025 estimates, anticipating a 16% year-over-year revenue growth, EBITDA margins at 18% of revenue, and earnings per share of $3.16.
The new price target of $135 is based on an enterprise value to gross order value (EV/GOV) multiple of approximately 0.7 times for the year 2025. This multiple represents a slight increase as the valuation extends into the year 2025.
DoorDash has been recognized for its strong positioning in the local on-demand delivery market. The company's latest financial outcomes and future projections have reinforced this view among analysts, underscoring its potential to lead in this sector.
The raised price target reflects confidence in DoorDash's long-term secular opportunity and its ability to sustain growth in the competitive delivery service industry. The company's financial trajectory, as outlined by Susquehanna, suggests a continued positive performance in the coming years.
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