KeyBanc raises DoorDash stock price target to $225

Published 01/10/2025, 02:22 AM
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On Thursday, KeyBanc Capital Markets adjusted their financial outlook on DoorDash Inc. (NASDAQ: NASDAQ:DASH), increasing the price target from the previous $180.00 to a new figure of $225.00. The firm maintained an Overweight rating on the stock, indicating a positive view of the company's potential performance. The stock has demonstrated strong momentum, with a remarkable 68.5% return over the past year and currently trading near $174. According to InvestingPro analysis, the stock appears overvalued at current levels, though 13 additional exclusive insights are available to subscribers.

KeyBanc analysts highlighted DoorDash as an attractive option for investors looking to gain exposure in the delivery category. They noted that the company faces minimal risk from autonomous vehicles (AV), as drivers remain essential for the delivery of food and groceries. Additionally, DoorDash's involvement in the grocery sector and its advertising business are expected to continue growing, further bolstering the company's prospects. The company's strong revenue growth of 24.6% and healthy financial position, as indicated by its Good Financial Health score on InvestingPro, support this positive outlook.

The revision of the price target to $225.00 is justified by a valuation metric, specifically 25.2 times the estimated 2026 enterprise value to EBITDA (earnings before interest, taxes, depreciation, and amortization). KeyBanc's decision reflects a modest increase in their expectations for DoorDash's gross order volume (GOV) and EBITDA, with less than a 1% rise in GOV and a more significant 3% to 5% increase in EBITDA projections. With the company's next earnings report scheduled for February 13, investors seeking deeper insights can access comprehensive valuation analysis through InvestingPro's exclusive research reports.

The analysts at KeyBanc emphasized that DoorDash's market position should not be significantly impacted by the advent of AV technology, as the nature of their service requires human drivers. Moreover, they see the company's advertising segment as a source of growth and profitability that will extend over multiple years.

KeyBanc's increased price target is based on a combination of their raised estimates and a higher multiple applied to DoorDash's growth rate, expressing confidence in the company's future financial performance.

In other recent news, DoorDash has been the center of positive attention from multiple financial analyst firms. Truist Securities has raised its price target for DoorDash from $180 to $217, following an impressive performance in the North American market during the fourth quarter of 2024.

This new target aligns with broader analyst sentiment as DoorDash's U.S. marketplace gross order volume (GOV) exceeded the consensus estimate of $18.8 billion, reaching over $19 billion. RBC Capital Markets also increased its price target for DoorDash to $215, highlighting the company's balanced growth approach and profitability.

BTIG echoed this confidence by raising its price target on DoorDash's shares to $200, up from the previous target of $175, due to strong quarter-to-date performance. Additionally, Citi maintained a Buy rating for DoorDash and increased its price target to $211, emphasizing consistent improvements in quality and selection, and the efficiency of its marketplace. Finally, Mizuho (NYSE:MFG) Securities raised DoorDash's price target to $200, citing the company's potential for profit growth.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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