BofA raised the firm’s price target on DoorDash to $119 from $103 and keeps a Buy rating on the shares. The firm says recent media reports suggest DoorDash’s investment cadence may change in 2024, highlighting geographical expansion of Wolt, increasing investment in grocery, and retail partnerships. While Significantly higher investment is a risk for 2024 margins, management has emphasized improving underlying profitability of both U.S. restaurant and non-restaurant verticals, which can fund higher investment levels, the analyst tells investors in a research note. BofA rolled forward its valuation for the shares to 2025 estimates.
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