Analyst Coverage
Yesterday STA Research maintained DoorDash with a Buy rating and a target price of $60 on the company’s stock.
Jefferies Financial LLC Initiated coverage on DoorDash with an Underperform rating and a target price of $37.
Piper Sandler Downgrades DoorDash to an Underweight rating and lowers the target price to $40 from $227.
DoorDash Inc Stock Analysis:
Based on the stock forecasts from 15 analysts, the average target price for the company’s stock is USD 76.72 over the next 12 months. This is a fairly optimistic outlook, as it suggests that analysts believe the stock will see significant growth in the coming year. Additionally, the average analyst rating for DoorDash Inc is “Buy,” which indicates that most analysts believe the stock is a good investment.
However, not all analysts are equally bullish on DoorDash Inc. Stock Target Advisor has rated the company’s stock as “Slightly Bearish,” based on a combination of 3 positive signals and 5 negative signals. This suggests that while there are some factors that suggest the stock could do well in the future, there are also some risks to consider.
At the last closing, DoorDash Inc’s stock price was USD 48.00. This is significantly lower than the average analyst target price, which suggests that there is room for the stock to grow. However, the stock has experienced some volatility recently, with the price changing by -0.82% over the past week, -6.01% over the past month, and -63.71% over the last year. This suggests that there are risks to investing in DoorDash Inc, and it may be wise to carefully consider these risks before making any investment decisions.
Fundamental Analysis:
Positive Fundamentals:
High market capitalization is something we like:
This organization is among the top quartile and is one of the biggest in its industry. These businesses are typically more reliable.
Low turbulence:
For a hold duration of at least 12 months, the stock’s yearly returns have been stable and constant when compared to peers in its industry, and they are in the top quartile. Although stability is desirable, it can also restrict returns.
A healthy cash flow:
The last four quarters saw positive total cash flow for the organization.
Negative Fundamentals:
Subpar risk-adjusted returns:
In comparison to its rivals, this company’s risk-adjusted return performance is below average. The returns are unpredictable, even if it is outperforming in terms of returns. Be careful as you go.
Lower than average dividend returns:
In comparison to its competitors, the company’s average income yield during the past five years has been low. If you are not seeking for work, it is not an issue.
Compared to book value, it is overpriced:
On a price to book value basis, the stock is selling at a premium to the median of its peer group.
Overpriced based on cash flow:
On a price to cash flow ratio, the stock is trading at a premium to that of its competitors. Its pricing is higher than the sector median. Whenever you are thinking about buying, go with prudence.
Free cash flow that is negative:
In the last four quarters, the company’s overall free cash flow was negative.
About DoorDash Inc.:
DoorDash Inc. operates a logistics platform that connects merchants, consumers, and dashers in the United States and internationally. The company was founded in 2013 and is headquartered in San Francisco, California. DoorDash operates a marketplace that provides a variety of services to merchants, including customer acquisition, delivery, insights and analytics, merchandising, payment processing, and customer support. The company also offers DoorDash Drive, a white-label logistics service, and DoorDash Storefront, which allows merchants to offer consumers on-demand access to e-commerce. Prior to changing its name to DoorDash, Inc. in 2015, the company was known as Palo Alto Delivery Inc. DoorDash’s platform helps merchants solve a range of mission-critical challenges and provides convenient delivery options for consumers.
