DoorDash stock could rise on moderating food inflation and market share gains, according to Mizuho Securities. The company upgraded the food delivery stock to buy from neutral in a Sunday note, with a new price target of $105 per share, up from $90 per share. Mizuho’s forecast implies an upside of around 30% from Friday’s close of $80.83. DoorDash stock has surged nearly 66% since the start of the year. DASH YTD Mountain DoorDash stock is up more than 65% year to date. Analyst James Lee says DoorDash is expected to beat Wall Street forecasts in the second half of 2023, driven by strong market share among peers and stronger consumer food spending. “We believe key factors include continued market share gains from its leading position in the United States and rational competition in Europe,” Lee said. “Together, moderate food inflation and resilient consumer spending provide further support to our view.” Lee added that DoorDash’s current earnings, 15x FY 2025, are cheap compared to the company’s growth prospects from 2023 to 2024. “We believe DASH’s valuation, at 15x FY25/EBITDA, does not reflect growth potential in the range of 15% coming out of FY23 and into FY24,” he said. — CNBC’s Michael Bloom contributed to this report.
How can we keep food fresh today and in the future
The Indianapolis Marathon, Odinism and soul food top the week’s search trends for Indiana