DoorDash Nearing DashMart Profitability, Says Analyst - DoorDash (NASDAQ:DASH)

JMP Securities analyst Andrew Boone reiterated a Market Perform rating on the shares of DoorDash Inc DASH with a price target of $100.
The analyst found 149 U.S. cities with DashMarts and believes they are undercounting individual locations as DashMarts appear to be a major investment area for DoorDash.
While this likely is a drag on margins near term, the analyst sees there is a clear path to improving DashMart profitability as locations scale, giving confidence about margin expansion projections.
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With multiple growth levers, including convenience (DashMarts & 3P), grocery, international/Wolt, and more, the analyst believes DoorDash can sustain double-digit GOV growth for U.S. DoorDash.
With 3P convenience achieving variable cost breakeven in 4Q22 and the company likely seeing improvements in DashMart and grocery profitability, the analyst believes they are nearing an inflection in the J-Curve for profitability.
This increases the analyst’s confidence in their projected 300 basis points of margin expansion for 2024, while 2023 EBITDA guidance may prove conservative.
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Price Action: DASH shares are trading lower by 1.08% at $59.66 on the last check Friday.