DoorDash Misses On Q1 Sales But 2025 Order Outlook Sparks Price Target Hikes

Shares of DoorDash Inc. DASH tanked in early trading on Wednesday after the company announced downbeat first-quarter sales on Tuesday.

Here are some key analyst takeaways.

Wedbush On DoorDash

Analyst Scott Devitt maintained a Neutral rating while raising the price target from $190 to $200.

DoorDash's revenue grew 20.7% year-on-year to $3.0 billion but came in below Street expectations of 22.8% growth, Devitt said in a note. He added, however, that the company's Gross Order Value (GOV) grew by $23.1 billion, ahead of consensus estimates of $22.9 billion.

Management guided to GOV growth in the range of 18.2%-20.2% for the second quarter, beating consensus by around 90 basis points at the midpoint "as the company continues to execute on its growth initiatives across international markets and new verticals," the analyst stated. "Despite ongoing macro uncertainty in the US, we are encouraged by the growth trajectory for the full year implied by the strength of the 2Q GOV guide," he further wrote.

Check out other analyst stock ratings.

Needham On DoorDash

Analyst Bernie McTernan reaffirmed a Buy rating, while lifting the price target from $225 to $230.

McTernan said DoorDash announced the acquisitions of UK-based Deliveroo and hospitality software operator SevenRooms. While Deliveroo helps the company expand its total addressable market, SevenRooms complements the capabilities of its commerce platform.

DoorDash generated 19.9% year-on-year GOV growth in the first quarter and guided to 19.2% growth in the second quarter, the analyst stated. The company's better bookings performance is being driven by investments in affordability, which could pressure margins in the near-term margin but "should pay off over the long-term given the higher order frequency and retention of DashPass subscribers," he wrote.

Cantor Fitzgerald On DoorDash

Analyst Deepak Mathivanan reiterated an Overweight rating and price target of $210.

DoorDash first-quarter performance and second-quarter guidance reflect that "fundamentals remain solid," Mathivanan said. The company's guidance GOV growth guidance indicates "relatively stable growth rates," while its EBITDA outlook "points to healthy incremental margins and steady margin expansion," he added.

The analyst wrote that DoorDash will likely exhibit "better resiliency during macro volatility.” The recently announced acquisitions of Deliveroo and SevenRooms should enable the company to expand into new geographies and "enhance the platforms’ restaurant services," he stated.

DASH Price Action: At the time of publication on Wednesday, shares of DoorDash had declined by 6.14% to $178.44.

Read More:  DoorDash To Boost Global Presence With $3.9 Billion Acquisition Of UK’s Deliveroo

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