DoorDash’s Strategic Growth and Diversification Drive Buy Rating with $240 Target

Analyst Ronald Josey from Citi reiterated a Buy rating on DoorDash (DASH – Research Report) and keeping the price target at $240.00.

Ronald Josey has given his Buy rating due to a combination of factors influencing DoorDash’s market position and growth potential. The company has reached an all-time high in order frequency, with significant growth in DashPass and Wolt+ memberships, indicating strong consumer adoption and engagement. Additionally, DoorDash’s strategic acquisitions of Deliveroo and SevenRooms are expected to enhance its market presence in Western Europe and expand its Commerce Platform offerings, respectively.
Moreover, the increasing adoption of grocery services, with more than 25% of monthly active users ordering from non-restaurant categories, highlights the company’s ability to diversify and capture demand across different verticals. DoorDash has also demonstrated operational efficiencies, such as reduced defect rates and improved delivery times, which contribute to better conversion rates. These factors, combined with expanding margins and strategic investments, support the Buy rating and a target price of $240.

In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $220.00 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.