DoorDash Price Target Raised After Positive Survey Results By Investing.com

Oppenheimer raised the price target on DoorDash Inc. (NASDAQ:) from $145 to $160 and maintained an Outperform rating. This adjustment comes after a survey of 1,451 respondents showed a positive trend in consumer spending on restaurant and food delivery services.

The survey found that a significant proportion of users – 64% for restaurant delivery and 70% for grocery delivery – are now spending more than they were six months ago. The results suggest that there is significant potential to increase order frequency among current users. As a result, Oppenheimer has increased its gross merchandise value (GTV) and gross order volume (GOV) forecasts for DoorDash and UBER Delivery for 2025 and 2026 by 2%.

Despite the current economic climate impacting cost-conscious consumers, the survey showed that 71% of non-users are unaware of the potential benefits of monthly subscriptions. This suggests a significant opportunity for DoorDash to attract new customers through increased marketing efforts.

The survey also highlighted challenges such as lower penetration in food delivery compared to restaurant delivery. 57% of respondents use grocery delivery services, while 67% use restaurant delivery. Noteworthy 73% prefer to shop for groceries in person. This preference could pose short-term hurdles for the grocery delivery sector, but Oppenheimer sees significant long-term potential for advertising revenue in future in-store initiatives.

The new price target of $160 is based on a multiple of 20x estimated 2026 EBITDA for DoorDash, discounted at 10%, which is the same as the target multiple for UBER. This represents a 37% premium over competitors such as UBER, CHWY, ABNB, RVLV, FLUT and CART. The premium is justified by DoorDash’s expected EBITDA growth, which is expected to be 54% faster than that of the company from 2024 to 2026 Competition.

DoorDash has recently received a lot of attention from various financial institutions. KeyBanc upgraded DoorDash to Overweight from Sector Weight and set a new price target of $177, citing the company’s growth prospects in the food and grocery delivery space. The firm’s forecasts point to robust growth in the coming years, with EBITDA expectations of $2.6 billion for 2025 and $3.5 billion for 2026. Raymond James echoed DoorDash’s observation with a ” “Outperform” rating, indicating potential for profitability growth in the company’s international and new market segments.

BTIG upgraded DoorDash shares to Buy from Neutral and set a price target of $155 based on the company’s near-term performance and underappreciated long-term growth drivers. Truist Securities gave DoorDash shares a Buy rating, highlighting the company’s strong user growth and strategic partnerships.

InvestingPro Insights

Given the positive trend in consumer spending on delivery services, Oppenheimer’s increased price target reflected the growth potential of DoorDash Inc. (NASDAQ:DASH). Consistent with these findings, InvestingPro Tips shows that DoorDash holds more cash than debt, indicating a strong balance sheet, and analysts predict the company will be profitable this year, signaling a positive outlook for investors.

InvestingPro data supports this assessment, with impressive revenue growth of 25.02% over the trailing twelve months through the second quarter of 2024, highlighting the company’s expanding market presence. Additionally, the stock’s robust total return of 83.01% over the last year demonstrates the significant gains for shareholders, while the price, which hovered near 97.72% of its 52-week high, suggests strong market confidence in the stock.

For those seeking more in-depth analysis, InvestingPro offers additional tips including insights into stock volatility, valuation multiples, and liquidity ratios that provide a comprehensive understanding of DoorDash’s financial health and market position. Interested readers can find more exclusive InvestingPro tips for DoorDash at

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