DoorDash initiated with a Buy at Deutsche Bank

Deutsche Bank initiated coverage of DoorDash with a Buy rating and $125 price target, implying 30% upside from current levels. DoorDash’s core markets in restaurant, grocery, convenience, and retail delivery are “massive” and measure at around $6.7 trillion, the analyst tells investors in a research note. With DoorDash capturing only 1% of its overall market via users that represent only 7% of available homes, “there is ample runway for user growth from here,” says the firm. The firm says the company will be one of the prime beneficiaries of digital transformation trends within these multi-trillion markets over the coming years.