Bernstein SocGen Group analysts raised the price target for DoorDash (NASDAQ:DASH) from $175 to $210 while maintaining an Outperform rating on the stock. The updated outlook reflects the company’s robust long-term earnings potential and improved operational execution, positioning it as a standout in the market.
The analysts emphasized that while the stock’s valuation has limited immediate room for multiple expansion, it remains compelling on a growth-adjusted basis compared to where it traded a year ago. DoorDash’s consistent performance, coupled with an upward revision in earnings quality, supports confidence in its long-term profitability. GAAP EBIT is gaining traction, bolstering the narrative around the company’s normalized earnings power.
Key drivers behind the revised price target include marginally higher estimates for gross order value (GOV) and EBITDA, as well as a reduction in the weighted average cost of capital (WACC) in the discounted cash flow model, now at 11% from 12%. The valuation approach has also adjusted the earnings multiple to 25x from 23x, reflecting increased confidence in DoorDash’s fundamental growth story.