Admittedly, things weren’t exactly looking great for on-demand food delivery platform DoorDash (NASDAQ:DASH). With macroeconomic conditions starting to turn against restaurants, that doesn’t mean good news for those who deliver their products. But Morgan Stanley sees a silver lining herein and hiked its rating accordingly. That was enough for investors, who gave DoorDash shares an extra 6% boost in the closing minutes of Thursday’s trading.
Morgan Stanley, via analyst Brian Nowak, noted that DoorDash already saw a pullback based on just how likely the company was to achieve its future targets. That same pullback managed to lower DoorDash shares to a level that made them an attractive buying opportunity. That was enough to prompt an upgrade to Overweight with a $145 price target. In addition, Morgan Stanley looks for DoorDash to ultimately reach its bull-case target price of $175.
A Mixed Bag of Future Developments
DoorDash is seeing some contradictory signs out there, though a lot of this seems dependent on location. For instance, Seattle’s recent shift in pay rules for businesses like DoorDash prompted an “unprecedented drop” in business as those costs were passed on to customers. That effectively priced many out of a DoorDash delivery, and thus, they stayed out accordingly. However, in Baltimore’s City College, students are turning to DoorDash delivery to find new and interesting places to eat. It seems as though opportunities are outpacing drawbacks, at least for now.
What Is the Stock Price Forecast for DoorDash?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on DASH stock based on 14 Buys and nine Holds assigned in the past three months, as indicated by the graphic below. After a 115.33% rally in its share price over the past year, the average DASH price target of $129.09 per share implies 6.34% upside potential.
