In a report released yesterday, Mike McGovern from Bank of America Securities maintained a Buy rating on DoorDash (DASH – Research Report), with a price target of $235.00.
Mike McGovern has given his Buy rating due to a combination of factors including DoorDash’s strategic move to acquire Deliveroo, which could significantly enhance its market presence. The acquisition proposal, valued at $3.6 billion, is seen as a positive step due to the lack of geographic overlap, reducing regulatory hurdles and allowing DoorDash to expand into new markets without direct competition.
Moreover, the UK market is particularly attractive for DoorDash, given its high online grocery penetration, aligning well with DoorDash’s existing convenience categories. Additionally, DoorDash’s strong financial position, with over $4 billion in cash and no debt, supports its capacity for such strategic acquisitions. The potential growth from integrating Deliveroo’s operations and the attractive valuation multiples further justify the Buy rating, as DoorDash is well-positioned to capitalize on these opportunities.
In another report released on April 24, Truist Financial also maintained a Buy rating on the stock with a $235.00 price target.