Summary

  • Food delivery company DoorDash (NYSE: DASH) received a rating and price target upgrade from broker Mizuho.
  • DASH has a mean recommendation rating of 2.4 on five and a consensus price target of US$94.8.
  • Among the 35 analysts covering the stock, 19 recommend a ‘hold’ rating and seven believe it to be a ‘buy’.

Brokerage Mizuho revised its rating on food distribution company DoorDash (NYSE: DASH) from ‘neutral’ to ‘buy’. The broker also upped its price target on DoorDash to US$105 from US$90. Mizuho’s upgraded price target represents an upside potential of 29.76% over DASH’s closing price on Monday.

EODHD/Others data suggests that DASH has a mean recommendation rating of 2.4 on five. Here, one depicts a ‘strong buy’ rating, while five stands for a ‘strong sell' rating. This rating is achieved by combining the ratings given by 35 analysts.

Meanwhile, the consensus price target on DASH is US$94.8, an upside potential of 17.15% over Monday’s closing price.

DASH Price Chart; Source: EODHD/Others

DASH closed at US$80.92 on Monday, September 19, 2023. As at Monday’s closing price, the stock price rose by 65.75% YTD and by 36.41% over the last 6 months. The stock reached its 52-week high of US$92.61 on July 31, 2023.

Analysts largely rate the stock as a ‘hold’

As per EODHD/Others, eight analysts believe DASH is a ‘strong buy’, seven believe it to be a ‘buy’ and 19 recommend it is a ‘hold’. One analyst has given DASH a ‘sell’ rating and none of the analysts have given DASH a ‘strong sell’ rating.

Brokers D.A. Davidson and Moffettnathanson downgraded the stock to ‘neutral’ on Friday, September 15, 2023. Meanwhile, China International Capital Corporation retained an ‘outperform’ rating on DASH after reviewing the stock on Monday.

Alternatively, Needham & Company kept its ‘buy’ rating on DASH intact. Other analysts that upgraded the stock to ‘moderate buy’ in August include Truist Securities and Evercore ISI.

Oppenheimer & Co. had also upgraded the stock to ‘outperform’ in early August, while upgrading the price target to US$110. Broker Evercore gave DASH an even higher price target of US$118 in early August.

Mizuho expects DASH’s GOV to outperform expectations

Mizuho upgraded DASH to ‘buy’ based on some key drivers for the company such as continuous market share gains from its category-leading position in the US. In addition to this, Mizuho believes that rational competition in Europe is another key driver for DASH.

The broker also expects DoorDash’s gross order value or GOV to exceed guidance and Street expectations in H2 2023. The company may receive support from moderate food inflation and continued consumer spending, as per Mizuho.

Additionally, income hikes for lower-wage customers may be higher than that for high earners due to labor shortage, which in turn may benefit DASH.

Image source: ©2023 Kalkine®; Data source: Company Reports

DoorDash expects Q3 2023 GOV to be in the range of US$15.8 billion to US$16.2 billion. Meanwhile, for the full year 2023, it expects the marketplace GOV to be in the range of US$64.2 billion to US$65.2 billion. Meanwhile, the adjusted EBITDA for the full year 2023 could range from US$750 million to US$1.05 billion.