DoorDash Stock Is Moving Higher Wednesday: What's Going On?

DoorDash Inc DASH shares are trading higher Wednesday following an upgrade from KeyBanc. A federal judge also ruled that a law requiring food delivery companies to share customer data with restaurants was unconstitutional.

What To Know: KeyBanc analyst Justin Patterson upgraded DoorDash from Sector Weight to Overweight on Wednesday and set a price target of $177.

KeyBanc joins multiple other firms who have released bullish updates on DoorDash over the past week. Raymond James reinstated DoorDash with an Outperform rating and set a price target of $155 this week, while Cantor Fitzgerald reiterated an Overweight and maintained a price target of $160. Last week, BTIG upgraded DoorDash from Neutral to Buy and announced a price target of $155.

DoorDash shares also appear to be getting a lift Tuesday after U.S. District Judge Analisa Torres ruled in favor of DoorDash and other food delivery companies, saying a New York City law that requires the companies to share customer data with restaurants was unconstitutional, per Reuters.

New York City reportedly put the law in place in 2021 in an attempt to help restaurants rebound from the COVID-19 pandemic. It required food delivery companies to share customer names, addresses, email and phone numbers with restaurants.

Delivery companies challenged the law, arguing that it violated the privacy rights of customers and posed a threat to data security. The judge determined that the city didn’t show it had a substantial interest in helping restaurants collect customer data.

DoorDash reportedly said the decision “rightly recognized how this law would have violated bedrock First Amendment rights of how we protect New Yorkers’ data.”

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DASH Price Action: DoorDash shares were up 2.70% at $145.50 at the time of publication, according to Benzinga Pro.

Photo: Diego Thomazini from Shutterstock.