DoorDash’s Strategic Outlook and Growth Potential Justify Buy Rating

Jefferies analyst John Colantuoni upgraded the rating on DoorDash to a Buy today, setting a price target of $260.00.

John Colantuoni has given his Buy rating due to a combination of factors that highlight DoorDash’s potential for growth and profitability. One key reason is the company’s strategic outlook for 2026, which has lowered expectations and provided flexibility for long-term investments, potentially leading to upside in consensus estimates. The recent acceleration in the growth of US restaurant delivery, DoorDash’s most profitable segment, further supports this positive outlook.
Additionally, Colantuoni notes that DoorDash’s plans for incremental investments in 2026 are expected to result in slight margin expansion, with advertising revenue growth serving as a significant tailwind. This growth in high-margin advertising revenue is anticipated to offset the increased investments, leading to peer-leading EBITDA growth. Moreover, the increased engagement and habituated usage among older cohorts in the US restaurant segment indicate a still-early penetration for delivery apps, suggesting further growth potential. These factors, combined with a recent decline in stock price, make DoorDash’s strong execution and growth potential appear underappreciated, justifying the Buy rating.

In another report released on November 14, Needham also reiterated a Buy rating on the stock with a $275.00 price target.

Based on the recent corporate insider activity of 192 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.