Analysts Bump Up DoorDash Price Target Post Q3 Result, Wolt Deal

  • Analysts bumped up their price targets on DoorDash Inc DASH after it registered a Q3 revenue beat and decided to acquire Helsinki food deliverer Wolt in an $8.1 billion deal.
  • Needham analyst Bernie McTernan affirmed a Buy and raised the PT from $240 to $270, implying a 40.6% upside.
  • Mizuho analyst James Lee raised the PT to $205 from $175, implying a 6.8% upside, and reiterated a Neutral. 
  • The analyst sees "strong execution" in Q3 but keeps a Neutral rating due to valuation.
  • RBC Capital analyst Brad Erickson raised the PT to $260 from $210, implying a 35.4% upside, and maintained an Outperform.
  • The company's Q3 results were an "afterthought" after announcing a €7 billion acquisition of Finnish delivery provider Wolt.
  • The total addressable market expansion tops the "inevitable core growth deceleration" heading into 2022. 
  • Despite the post-earnings jump in stock price, Erickson remains positive on the stock, given its further potential optionality to other geographies.
  • Gordon Haskett analyst Robert Mollins downgraded DoorDash to Hold from Buy.
  • Price Action: DASH shares traded higher by 16.7% at $224 in the premarket session on the last check Wednesday.
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