Citi analyst Ronald Josey has reiterated their bullish stance on DASH stock, giving a Buy rating yesterday.
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Ronald Josey has given his Buy rating due to a combination of factors that highlight DoorDash’s strategic growth initiatives and market potential. A significant reason for the positive outlook is DoorDash’s expanded partnership with Kroger, which now includes approximately 2,700 stores across multiple banners. This expansion is expected to enhance DoorDash’s presence in the online grocery market, attracting larger basket sizes and increasing its market share.
Additionally, DoorDash’s investment in new verticals is contributing to its growth, with over 25% of its global monthly active users having ordered from these newer categories. The integration of loyalty programs and retail media into the DoorDash app further strengthens its position by offering affordability and insights for brand partners. These strategic moves, coupled with strong traffic growth and the anticipated closure of the ROO acquisition, support the Buy rating and the target price of $315.
Josey covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Meta Platforms, and Pinterest. According to TipRanks, Josey has an average return of 27.1% and a 63.92% success rate on recommended stocks.
In another report released yesterday, Mizuho Securities also initiated coverage with a Buy rating on the stock with a $350.00 price target.