Benzinga - by Priya Nigam, Benzinga Staff Writer.
Shares of DoorDash Inc (NYSE: DASH) rose in early trading on Monday, after the company announced multiple new grocery partners.
The company’s gross order value (GOV) growth appears poised to outperform guidance and Street expectations in the back half of 2023, according to Mizuho Securities.
The DoorDash Analyst: James Lee upgraded the rating for DoorDash from Neutral to Buy, while raising the price target from $90 to $105.
Check out other analyst stock ratings.
The DoorDash Thesis: The guidance reflects 21% GOV growth at the midpoint, which appears conservative given the company’s “continued market share gains across all its categories, including U.S. and international restaurants, and grocery delivery,” Lee said in the upgrade note.
DoorDash should benefit from its category-leading position in U.S. food delivery and can reinvest profits from that business into other categories “where competition has become relatively rational,” the analyst stated.
“At the same time, consumer spending remained resilient with moderated food inflation (food away from home down nearly 200 bps YTD) and strength in lower-income demographics from higher wages,” he added.
DASH Price Action: Shares of DoorDash had risen by 2.8% to $83.20 at last check Monday.
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