DoorDash price target lowered to $127 from $138 at BMO Capital

BMO Capital lowered the firm’s price target on DoorDash to $127 from $138 and keeps an Outperform rating on the shares after its Q1 results and guidance. The stock fell on lower-than-expected Q2 EBITDA margin forecast on higher headcount for engineering talent and platform costs, and lack of visibility on consumer spend in the second half given stickier inflation, the analyst tells investors in a research note. BMO adds however that innovation and secular tailwinds position DoorDash well for ongoing GOV growth with a path to GAAP profitability in 2024.