Benchmark starts DoorDash with Buy on ‘ever-growing dominance’

Benchmark analyst Mark Zgutowicz initiated coverage of DoorDash with a Buy rating and $165 price target. The analyst is positive on the company’s “ever-growing dominance” in restaurant delivery and the subsequent network effects its “massive” user and driver scale afford it to new retail vectors including grocery, convenience, and brick and mortar broadly. The firm expects DoorDash’s monetization potential of these emerging verticals to become more tangible over the next 12 months, leading to greater velocity of revenue and contribution margin that is not contemplated in consensus expectations.