Benchmark lowers doordash stock price target 🤔
Benchmark lowered its price target on DoorDash Inc. (NASDAQ:DASH) to $270 from $285 while maintaining a Buy rating on the stock, according to a note released Monday. Shares currently trade at $201.69, roughly 29% below their 52-week high of $285.50, giving the company an $85.5 billion market cap.
The firm said near-term margin and take-rate pressure largely reflects investment in network density, new verticals and global infrastructure ahead of monetization. Benchmark said a gross order value beat alone is insufficient to re-rate the shares.
The firm’s second-quarter estimate for Marketplace gross order value and total revenue is 1% above and 2% below consensus, respectively, with adjusted EBITDA in line. The company is scheduled to report earnings Wednesday after market close. According to InvestingPro, net income is expected to grow this year, with analysts anticipating continued sales growth—the company posted 31% revenue growth over the last twelve months. These insights are among 15 ProTips available to subscribers.
Benchmark’s third-quarter adjusted EBITDA estimate is 6% below consensus and reflects a 16 basis point quarter-over-quarter lift in adjusted EBITDA as a percentage of gross order value. The primary swing factor for third-quarter EBITDA remains gas program relief, with approximately $50 million embedded in second-quarter guidance.
The firm said the more important catalysts are evidence that revenue take rate is near a floor and third-quarter guidance that preserves the second-half EBITDA build as advertising and services begin contributing to take rate and gross margin.
In other recent news, DoorDash has been the focus of several analyst reports and developments. TD Cowen reiterated a Buy rating on DoorDash, setting a price target of $225, with expectations of a 36% year-over-year growth in gross order value for the second quarter. Citizens maintained its Market Outperform rating with a $250 price target, noting stable pricing trends despite minor price increases in certain grocery items. Additionally, Citizens highlighted the launch of DoorDash’s new reservation aggregation tool, Channel Connected by SevenRooms, which aims to improve restaurant reservations across multiple booking channels.
In the competitive landscape, Wells Fargo’s survey reported that DoorDash increased its fees by 21% quarter-over-quarter while reducing product pricing by 4%, marking it as the highest-fee provider among third-party delivery services. Meanwhile, Bank of America analysts expressed optimism about DoorDash’s potential to outperform in the evolving artificial intelligence cycle. They noted that while internet companies are currently exceeding expectations, investor interest is shifting towards semiconductor and hardware sectors. These recent developments provide a comprehensive view of DoorDash’s current market positioning and strategic initiatives.
