DoorDash (DASH) has received a new Buy rating, initiated by Goldman Sachs analyst, Eric Sheridan.
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Eric Sheridan has given his Buy rating due to a combination of factors including DoorDash’s recent acquisition of Deliveroo, which is expected to enhance the company’s growth trajectory. The integration of Deliveroo into DoorDash’s operations is anticipated to drive significant growth, with expectations of increased Gross Order Value (GOV) in the coming years.
Furthermore, DoorDash has demonstrated strong performance in its core operations, with GOV surpassing previous estimates in recent quarters. This outperformance has led to an upward revision of future GOV estimates, indicating a positive outlook for the company’s financial performance. The strategic investments in Deliveroo are expected to accelerate growth, albeit with a temporary impact on EBITDA margins. Overall, these factors contribute to a favorable long-term growth potential for DoorDash, justifying the Buy rating.
In another report released on October 24, Mizuho Securities also maintained a Buy rating on the stock with a $255.00 price target.