Needham remains bullish on DoorDash; Reduces target price by 29%
- Needham analyst Bernie McTernan maintained DoorDash, Inc. DASH with a buy rating and lowered the price target from $140 to $100 (up 42%).
- He believes DASH could leverage its leadership position in restaurant delivery to become one of North America’s leading horizontal, on-demand and fulfillment providers.
- Ultimately, he believes DASH would be able to deliver all the products consumers need within an hour, have an expiration date, and be produced by a local supplier.
- He spoke with 37 Albertsons Companies, Inc. AIT stores in 10 US states on grocery delivery trends.
- Following his last checks in January, online orders and deliveries continue to grow, and he believes the category has a concrete growth avenue for DASH and Uber Technologies, Inc. UBER.
- An eMarketer survey indicates that food delivery is less sensitive to macroeconomic conditions than expected, making service more inelastic and more similar to how consumers view groceries rather than restaurant dining. His estimates now include Wolt.
- Price action: DASH shares traded down 4.5% to $70.59 when last checked on Monday.
- Photo via company
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