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DoorDash’s Consistent Growth and S&P 500 Eligibility Drive Buy Rating

DoorDash’s Consistent Growth and S&P 500 Eligibility Drive Buy Rating

Analyst Bernie McTernan of Needham reiterated a Buy rating on DoorDash (DASHResearch Report), with a price target of $225.00.

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Bernie McTernan has given his Buy rating due to a combination of factors, primarily focusing on DoorDash’s consistent growth trajectory. The company has achieved over 20% growth in bookings for three consecutive years, underscoring its robust expansion even in the post-pandemic environment.
Moreover, DoorDash’s core US restaurant sector continues to grow at a double-digit pace, and new business segments now account for approximately 25% of their gross order volume. Despite trading at a higher multiple, the consistent increase in bookings has led to improved adjusted EBITDA estimates over time. Additionally, DoorDash’s eligibility for inclusion in the S&P 500 further supports its positive outlook and potential for continued success.

According to TipRanks, McTernan is a 4-star analyst with an average return of 5.1% and a 50.68% success rate. McTernan covers the Consumer Cyclical sector, focusing on stocks such as Super Group (SGHC), Maplebear, and Peloton Interactive.

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