DoorDash initiated with an Underperform at Jefferies

Jefferies analyst John Colantuoni initiated coverage of DoorDash with an Underperform rating and $37 price target. Colantuoni estimates DoorDash’s market share in U.S. Restaurant Delivery increased from 18% in 2018 to 56% in 2022, but expects share gains to slow given past gains came from players that are now much smaller, the analyst tells investors in a research note. He also expects the overall category to experience more modest growth following a pull forward in adoption during the pandemic and less contribution from excess food inflation.