Bank of America Securities analyst Mike McGovern reiterated a Buy rating on DoorDash (DASH – Research Report) today and set a price target of $235.00.
Mike McGovern has given his Buy rating due to a combination of factors that highlight DoorDash’s resilience and growth potential in the current economic climate. The online delivery sector, where DoorDash operates, has shown resistance to inflation and recessionary pressures, with demand remaining relatively inelastic. This is largely attributed to the convenience factor that makes consumers continue using delivery services despite economic challenges.
Moreover, DoorDash has demonstrated strong growth in the online restaurant category, outpacing other online retail sectors. Even in the face of potential tariff-induced food price inflation, DoorDash has maintained steady order volumes, with consumers adjusting their spending habits rather than reducing order frequency. Additionally, DoorDash benefits from a natural recession hedge due to potential margin improvements from an expanding labor pool. These factors, combined with new partnerships and strategic positioning, support the Buy rating with a price objective of $235.
According to TipRanks, McGovern is ranked #3760 out of 9317 analysts.