Jefferies has adjusted its rating for DoorDash (DASH, Financial), moving it from 'Buy' to 'Hold', while slightly increasing the price target to $250 from $240. Despite anticipating positive surprises in consensus estimates and leading EBITDA growth among peers, Jefferies suggests that these factors alone may not sustain the stock's outperformance without optimistic evaluations of DoorDash's non-core ventures.
The firm indicates that the company's recent focus on affordability might constrain the potential growth in its take rate. Currently, with DoorDash's shares having risen by 45% this year, Jefferies considers the stock to be fairly valued.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 36 analysts, the average target price for DoorDash Inc (DASH, Financial) is $230.31 with a high estimate of $315.00 and a low estimate of $179.34. The average target implies an downside of 5.16% from the current price of $242.85. More detailed estimate data can be found on the DoorDash Inc (DASH) Forecast page.
Based on the consensus recommendation from 42 brokerage firms, DoorDash Inc's (DASH, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for DoorDash Inc (DASH, Financial) in one year is $153.77, suggesting a downside of 36.68% from the current price of $242.85. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the DoorDash Inc (DASH) Summary page.
DASH Key Business Developments
Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- DoorDash Inc (DASH, Financial) is expanding its international presence with the acquisition of Deliveroo, which is expected to add scale and enhance its European operations.
- The company has seen strong growth in its new verticals, particularly in grocery, with an increasing number of users ordering both groceries and restaurant meals.
- DoorDash Inc (DASH) continues to focus on improving unit economics and driving retention and order frequency, which is expected to enhance profitability.
- The DashPass membership program is experiencing growth, with an all-time high in subscribers and increased order frequency.
- DoorDash Inc (DASH) is investing in autonomy and technology to improve delivery efficiency and customer satisfaction, which could lead to long-term operational benefits.
Negative Points
- The acquisition of Deliveroo and SevenRooms may require significant investment, potentially impacting short-term profitability.
- Deliveroo's growth and margins have been lower than DoorDash Inc (DASH)'s, raising concerns about structural challenges in the European market.
- The company's take rate has decreased due to increased promotional activities and affordability initiatives, impacting net revenue margins.
- There is ongoing regulatory uncertainty, particularly in cities like New York, which could affect operational costs and pricing strategies.
- The competitive landscape in Europe remains intense, with DoorDash Inc (DASH) entering some markets as a second or third player, which may require additional resources to gain market share.
