DoorDash Positioned As Clear Market Share Gainer With Growth In Grocery And Ads, Analyst Says, Upgrades Stock
DoorDash, Inc (NASDAQ:DASH) stock surged Wednesday after KeyBanc analyst Justin Patterson upgraded the stock from Sector Weight to Overweight with a $177 price target.
Patterson noted DoorDash as a clear share gainer in a secular growth category with emerging revenue streams from advertising and new verticals like grocery.
When Patterson initiated DoorDash before second-quarter earnings, he was constructive on DoorDash’s fundamentals and long-term opportunity but cautious on near-term consumer spending data points, particularly around restaurants.
The analyst told DoorDash’s second-quarter results eased many concerns about any significant impact from weaker consumer spending. Additionally, a broader set of reports showed resilience, and he left the second quarter viewing consumer softness as more localized than widespread.
His latest survey results reinforced that DoorDash is still distancing peers in food delivery and showing …
Full story available on Benzinga.com