DoorDash Delivers Strong Q4, 7 Analysts Raise Forecasts - DoorDash (NASDAQ:DASH)

Shares of DoorDash Inc DASH were climbing in early trading on Wednesday, after the company reported solid fourth-quarter results.

Here are some key analyst takeaways.

Needham analyst Bernie McTernan reaffirmed a Buy rating, while raising the price target from $180 to $225.
Piper Sandler analyst Thomas Champion maintained a Neutral rating, while revising the price target higher from $160 to $210.
Wedbush analyst Scott Devitt maintained a Neutral rating, while lifting the price target from $160 to $210.
Roth Capital Partners analyst Rohit Kulkarni reiterated a Neutral rating, while raising the price target from $165 to $193.
Benchmark analyst Mark Zgutowicz reiterated a Buy rating, while lifting the price target from $180 to $220.
Cantor Fitzgerald analyst Deepak Mathivanan maintained an Overweight rating, while raising the price target from $200 to $230.
Goldman Sachs analyst Eric Sheridan maintained a Neutral rating, while lifting the price target from $192 to $212.

Check out other analyst stock ratings.

Needham: DoorDash's gross order value (GOV) grew 20.6% year-on-year, accelerating after two straight quarters of deceleration. The company also "capped off a third straight year of growing GOV >20% post pandemic," McTernan said. The company continues to pursue opportunities to expand its reach and frequency beyond the 100 million people who ordered on the platform in the past year and over 7 million deliveries per day, he added.

"New vertical penetration is being driven by continued supply gains and continued growth in membership with memberships up +4M YoY," the analyst wrote. DoorDash guided to a deceleration in bookings by roughly 200 basis points at the midpoint in the first quarter.

Piper Sandler: DoorDash's revenues grew by 25% year-on-year to $2.8 billion. The company generated strong gross profits of $1.42 billion, beating Street expectations by around 5%, Champion said.

DoorDash now has more than 42 million monthly active users (MAUs), growing double digits, the analyst stated. "The new ~$5BN buyback announced was also a surprise," he further wrote.

Wedbush: DoorDash's GOV and revenue beat consensus by 2% and 1%, respectively, with GOV growth accelerating by around 120 basis points (bps) sequentially to 20.6% year-on-year, Devitt said. "The company continues to generate Y/Y operating leverage, with adj. EBITDA margin up 394bps Y/Y in the quarter to reach 19.7% of revenue," he wrote.

Management guided to GOV growth of 17.5%-19.5% year-on-year for the first quarter, the analyst stated. "The company continues to execute on its growth initiatives across international markets and new verticals," he added.

Roth Capital Partners: DoorDash's fourth-quarter GOV result and first-quarter GOV guidance came in higher than expected, Kulkarni said. He added, however, that the EBITDA result and outlook both were below consensus, "implying rising cost of maintaining premium growth."

"Mgmt. continues to deliver consistent growth against a transparent guidance philosophy, while prioritizing long-tailed investment opportunities and cash generation," the analyst wrote. While the fourth quarter lacked surprise and there seems to be no upside to the first-quarter guidance, he further stated.

Benchmark: Zgutowicz expressed concern around the company's order growth in 2025, given the "uncertain sustainability of restaurant market share gains, partially offset by growing grocery supply last quarter." Higher discounts, incentives and subscription promotions drive DoorDash's grocery delivery, he added.

DoorDash's grocery volumes depend on "enterprise-type merchants," the analyst stated. "We believe continued regional grocery supply adds provides visibility into sustained supply benefits to DASH as it extends its regional grocer presence broadly over the next several years," he further wrote.

Cantor Fitzgerald: DoorDash's MAUs continue to grow in double digits and with penetration of MAUs to annual orders being less than 50%, there appears to be "plenty of runway for frequency gains," Mathivanan said.

"DASH continues to make steady progress in the grocery vertical with selection, accuracy, and affordability even as the category continues to reach closer to positive unit economics," the analyst wrote. The company announced a new share repurchase program of $5 billion and indicated that it "plans to be opportunistic with buybacks over time," he further stated.

Goldman Sachs: DoorDash continues to expand its platform beyond restaurant food delivery, "towards a broader local commerce strategy," Sheridan said. There is room for user penetration globally, which is "a large opportunity," he added.

Investors are likely to focus on the balance between GOV growth and adjusted EBITDA margin progression, the analyst stated. Management indicated "a rising Adj EBITDA margin as a % of GOV trajectory as 2025 moves sequentially from the levels guided to in Q1 2025," he further wrote.

Price Action: Shares of DoorDash had risen by 2.52% to $197.96 at the time of publication on Thursday.

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