Analysts Bump Up DoorDash Price Target Post Q3 Result, Wolt Deal

Analysts bumped up their price targets on DoorDash Inc DASH after it registered a Q3 revenue beat and decided to acquire Helsinki food deliverer Wolt in an $8.1 billion deal.
Needham analyst Bernie McTernan affirmed a Buy and raised the PT from $240 to $270, implying a 40.6% upside.
Mizuho analyst James Lee raised the PT to $205 from $175, implying a 6.8% upside, and reiterated a Neutral.
The analyst sees "strong execution" in Q3 but keeps a Neutral rating due to valuation.
RBC Capital analyst Brad Erickson raised the PT to $260 from $210, implying a 35.4% upside, and maintained an Outperform.
The company's Q3 results were an "afterthought" after announcing a €7 billion acquisition of Finnish delivery provider Wolt.
The total addressable market expansion tops the "inevitable core growth deceleration" heading into 2022.
Despite the post-earnings jump in stock price, Erickson remains positive on the stock, given its further potential optionality to other geographies.
Gordon Haskett analyst Robert Mollins downgraded DoorDash to Hold from Buy.
Price Action: DASH shares traded higher by 16.7% at $224 in the premarket session on the last check Wednesday.

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