Strategic Acquisitions and Strong Financial Performance Drive Buy Rating for DoorDash

In a report released today, Bernie McTernan from Needham maintained a Buy rating on DoorDash (DASH – Research Report), with a price target of $225.00.

Bernie McTernan has given his Buy rating due to a combination of factors including DoorDash’s strategic acquisitions and financial performance. The acquisition of Deliveroo is a significant move that enhances DoorDash’s global presence and operational efficiency, offering potential for increased market share and improved service delivery. Additionally, the purchase of SevenRooms, a hospitality software operator, for $1.2 billion in cash, is expected to complement DoorDash’s existing operations and expand its capabilities.
Moreover, DoorDash’s financial results for the first quarter showed a slightly better-than-expected adjusted EBITDA, driven by higher bookings. The company also reported an increase in monthly active users and membership growth, alongside a continued expansion in grocery services. Although the second quarter results were slightly below expectations due to lower margins, the overall health of the consumer market appears strong, and DoorDash’s ongoing investments are anticipated to support future growth.

In another report released yesterday, Evercore ISI also maintained a Buy rating on the stock with a $240.00 price target.

Based on the recent corporate insider activity of 169 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.