In a report released today, Lee Horowitz from Deutsche Numis maintained a Buy rating on DoorDash (DASH – Research Report), with a price target of $155.00.
Lee Horowitz has given his Buy rating due to a combination of factors surrounding DoorDash’s position in the market, despite the recent partnership between UberEats and Instacart. Horowitz acknowledges the potential threat to DoorDash’s core business from this tie-up but assesses the risk as limited. He estimates that the partnership could at most jeopardize 4% and 7% of the market’s order estimates for DoorDash in 2024 and 2025, respectively. However, he suggests that these figures may be overstated, considering not all Instacart+ members are DashPass subscribers and that many DoorDash orders are below the average order value (AOV) of $35, which is required for free delivery in the UberEats-Instacart partnership.
Furthermore, Horowitz argues that the actual at-risk orders for DoorDash are likely in the range of 2-4% of the projected orders for the years 2024 and 2025. He believes that DoorDash will retain a significant portion of these orders due to the higher cost of delivery for orders under $35 through the competing service, which contrasts with DoorDash’s lower AOVs and its ability to offer more competitive delivery options. By his calculations, the potential market share loss for DoorDash is even lower than initially anticipated, supporting the Buy rating. This assessment reflects a nuanced understanding of the market dynamics and DoorDash’s competitive positioning, leading to a positive outlook on the company’s stock.
According to TipRanks, Horowitz is a 5-star analyst with an average return of 31.7% and a 66.15% success rate. Horowitz covers the Consumer Cyclical sector, focusing on stocks such as eBay, Wayfair, and Airbnb.
In another report released today, Jefferies also maintained a Buy rating on the stock with a $150.00 price target.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
DoorDash (DASH) Company Description:
Founded in 2013, DoorDash Inc is a California-based company which provides on-demand food delivery services in the United States, Canada, and Australia through its local logistics platform.
Read More on DASH:
- Sprout Social Stock (NASDAQ:SPT): Is the 40% Plunge a Buying Opportunity?
- DoorDash price target lowered to $127 from $138 at BMO Capital
- DoorDash price target lowered to $165 from $175 at RBC Capital
- DoorDash price target lowered to $118 from $121 at Roth MKM
- DoorDash price target lowered to $145 from $155 at Truist
