DoorDash price target raised by $15 at Mizuho, here’s why

Mizuho raised the firm’s price target on DoorDash to $120 from $105 and keeps a Buy rating on the shares. The firm’s analysis of key operating metrics shows that DoorDash continues to gain share from favorable unit economics of rational competition, increased labor supply and higher network density. At the same time, the analyst sees continued margin expansion from lower dasher and customer acquisition costs as well as disciplined fixed cost spending. It believes DoorDash’s fiscal 2024 EBITDA could be nearly 20% above consensus, assuming incremental EBITDA margins remain the same level at 2023.