After DoorDash Inc DASH reported an earnings beat for the third quarter, four analysts changed their price targets for the company.
A segment analysis of DoorDash implies international and U.S. non-restaurant segments could reach incremental margins of 5% in 2025, with the U.S. restaurant segment comprising 76% of the total gross order volume (GOV), Oppenheimer said Monday.
The DoorDash Analyst: Jason Helfstein upgraded DoorDash from Perform to Outperform while establishing a price target of $70.
The DoorDash Takeaways: The company’s EBITDA is expected to reach $1.5 billion, with GOV margins of 1.8% in 2025, up from 0.7% in 2022, Helfstein said in the upgrade note.
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“3Q showed continued strength, despite uncertain macro, with GOV 2% above Opco/Street and EBITDA $31M/$29M higher, with 4Q EBITDA guided $11M higher,” the analyst said.
“We forecast US restaurant contribution margins improving from 5.7% in '22E to 6.1% in '25E, with Int'l. & US non-restaurant contribution margins improving from -13.4% in '22E to -2.4% in '25E—based on 4–5% incremental margins,” he added.
DASH Price Action: Shares of DoorDash had risen by 3.86% to $53.56 premarket Monday.
Photo courtesy of DoorDash.
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