Jefferies analyst John Colantuoni maintained a Buy rating on DoorDash (DASH – Research Report) today and set a price target of $250.00.
John Colantuoni has given his Buy rating due to a combination of factors that highlight DoorDash’s strong international growth potential. The company has been successful in expanding its market share across international markets by leveraging strategies that have worked well in the US, where it already commands a significant portion of the restaurant delivery market. Despite low adoption rates in these international markets, they are expanding rapidly, contributing to a projected compound annual growth rate of approximately 35% in international gross order value through 2027. This international momentum is seen as a crucial factor in maintaining overall growth, especially if there is a slowdown in US consumer spending.
Colantuoni also notes that DoorDash’s top international markets currently contribute a smaller portion of gross order value compared to competitors like Uber, indicating significant room for growth. The company’s market share has improved notably in recent years, driven by increased membership adoption, reduced competitor promotions, and expanded geographic reach. Additionally, DoorDash’s customer base tends to be higher income, which could provide resilience against potential macroeconomic challenges in the US. These elements combine to present a compelling growth narrative for DoorDash, justifying the Buy rating.
According to TipRanks, Colantuoni is a 4-star analyst with an average return of 8.5% and a 62.03% success rate. Colantuoni covers the Consumer Cyclical sector, focusing on stocks such as eBay, Airbnb, and Expedia.
In another report released yesterday, Bernstein also maintained a Buy rating on the stock with a $210.00 price target.
Questions or Comments about the article? Write to editor@tipranks.com