Bank of America Securities analyst Mike McGovern has reiterated their bullish stance on DASH stock, giving a Buy rating today.
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Mike McGovern has given his Buy rating due to a combination of factors that highlight DoorDash’s impressive financial performance and growth potential. The company’s top-line results have exceeded expectations, with strong guidance for the upcoming quarter, indicating continued growth in gross order value and EBITDA. Additionally, the stability in the take rate and the expansion of the EBITDA margin suggest a robust financial footing.
Furthermore, DoorDash’s New Verticals segment is gaining traction, with a significant portion of monthly active users engaging with these new offerings. The potential for DoorDash to become a market leader in New Verticals deliveries by 2025, along with improvements in unit economics, points towards long-term profitability. The possibility of S&P inclusion could also serve as a catalyst, enhancing the stock’s attractiveness. These elements collectively support McGovern’s decision to reiterate a Buy rating and raise the price objective to $245.
In another report released today, Needham also maintained a Buy rating on the stock with a $225.00 price target.