Needham Remains Upbeat On DoorDash; Slashes Price Target By 29%

Needham analyst Bernie McTernan maintained DoorDash, Inc DASH with a Buy rating and lowered the price target from $140 to $100 (42% upside).
He believes DASH could leverage its leadership position in restaurant delivery to become one of the leading, horizontal, on-demand, last-mile fulfillment providers in North America.
Ultimately, he thinks DASH would be able to deliver all goods that consumers need within an hour, have an expiration date, and be produced by a local vendor.
He spoke with 37 Albertsons Companies, Inc. ACI stores across 10 U.S. states on grocery delivery trends.
Following his last checks in January, online ordering and delivery continue to grow, and he thought the category has a concrete growth runway for DASH and Uber Technologies, Inc UBER.
An eMarketer survey points to food delivery being less susceptible to macroeconomic conditions than anticipated, making the service more inelastic and more similar to how consumers view groceries rather than dining out. His estimates now include Wolt.
Price Action: DASH shares traded lower by 4.5% at $70.59 on the last check Monday.
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