MoffettNathanson upgrades DoorDash to Buy after risk failed to materialize

MoffettNathanson earlier today upgraded DoorDash to Buy from Neutral with a price target of $164, up from $118. The stock in premarket trading is up 2%, or $3.32, to $140.50. The impetus behind the firm’s previous DoorDash downgrade, student loan risks, has failed to materialize, the analyst tells investors. The firm, which says it has “always loved DoorDash’s longer-term growth story,” had been worried about short-term headwinds, but admits that in retrospect, it was “too cute by half.” As grocer selection improves on DoorDash, the company should capture growing consumer demand, the analyst tells investors in a research note.