In a report released today, Brian Nowak from Morgan Stanley maintained a Buy rating on DoorDash (DASH – Research Report), with a price target of $220.00.
Brian Nowak has given his Buy rating due to a combination of factors that highlight the strength and potential of DoorDash’s core business. The company’s recent results and guidance demonstrate its resilience and ongoing improvement in profitability, with no evident signs of macroeconomic weaknesses affecting its performance. This robust performance has led to upward revisions in key financial metrics, such as Gross Order Value (GOV) and Adjusted EBITDA, which in turn supports a price target increase to $220, reflecting a potential upside.
Furthermore, the strategic acquisitions of Deliveroo and SevenRooms are seen as pivotal moves to bolster DoorDash’s market presence and capabilities. While the acquisitions represent a significant investment, they are expected to be accretive in the long term, with a focus on reinvesting to drive sustainable growth in EBITDA and free cash flow. The strong market position of Deliveroo in London, particularly, is anticipated to generate substantial EBITDA, which DoorDash can leverage for further global expansion. These strategic initiatives underscore Nowak’s confidence in DoorDash’s ability to deliver high returns on invested capital, justifying the Buy rating.
In another report released yesterday, Evercore ISI also reiterated a Buy rating on the stock with a $240.00 price target.
Based on the recent corporate insider activity of 171 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DASH in relation to earlier this year.