Benchmark Co. analyst Mark Zgutowicz maintained a Buy rating on DoorDash (DASH – Research Report) today and set a price target of $225.00.
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Mark Zgutowicz has given his Buy rating due to a combination of factors influencing DoorDash’s financial outlook. One of the primary reasons is the company’s focus on affordability, which is seen as a crucial strategy to drive EBITDA growth despite the challenges in take rate optics. Although there is some uncertainty regarding the impact of macroeconomic factors and competition on this strategy, the overall approach is expected to bolster profitability.
Additionally, Zgutowicz notes the positive developments in DoorDash’s international expansion, particularly through its association with Deliveroo and Wolt, which could enhance its market presence. The potential integration of SevenRooms software solutions is also viewed favorably, as it could improve operational efficiencies in reservations, guest data management, and marketing. Despite some conservative adjustments to revenue and order growth assumptions, the increased forward profitability justifies the raised price target and supports the Buy rating.