DoorDash Price Target Get’s Another Look – Analysts Revise En Masse, The Latest At $360

DoorDash's stock (DASH) has been busy setting fresh highs, as a surge of analyst optimism following a stronger-than-expected Q2 performance adds to the bullish sentiment. Numerous firms raising their price targets and reaffirming positive ratings, with Evercore the latest to move substantially higher today.

Looking first at Q2 results, and impressive growth across metrics have set the street up to re-rate, and revise models. Revenue reached $2.63 billion, surpassing estimates, while total orders jumped 19% year-over-year. Gross Order Value (GOV) also rose to $19.71 billion, a 20% increase compared to the same period last year.

Moving to the street's revisions, and Evercore ISI have added to earlier wave of changes, with the most bullish look of them all.

The firm boosted its price target to a Street-high $360 from $240, citing the company's “strong” Q2 and confidence in its growth trajectory. Their “Outperform” rating signals a strong belief in DoorDash's ability to continue exceeding expectations.

BMO Capital raised its target to $288, highlighting the 3% GOV beat and the improving unit economics of DoorDash's expanding “new verticals,” which include grocery and convenience delivery. Raymond James followed suit, setting a $325 target and emphasizing the upside from loyalty programs and the company's growing advertising revenue.

Other firms like Truist, Oppenheimer, Benchmark, BofA, Citizens JMP, and KeyBanc also increased their price targets, generally maintaining “Buy” or “Outperform” ratings. The consensus points to DoorDash's successful product improvements, accelerating user growth, and expanding market share as key drivers.

Even Wedbush, which maintains a “Neutral” rating, raised its target to $280, acknowledging the encouraging Q2 results and management's expectation of becoming a volume share leader in new verticals within the next year.

“The company reported a ‘stellar' Q2 and a higher Q3, driven by accelerating growth across users and orders while reflecting continuous product improvements in a large and growing total addressable market,” noted Truist analyst Youssef Squali.

For Q3 2025, DoorDash anticipates Marketplace GOV between $19.4 billion and $19.8 billion, exceeding the StreetAccount consensus of $19.51 billion. This optimistic outlook further fuels investor confidence.

The Bull Case for DoorDash:

• Strong Growth: Accelerating GOV, order volume, and revenue growth demonstrate DoorDash's ability to capture market share and expand its user base.
• New Verticals: Successful expansion into grocery, convenience, and other non-restaurant categories diversifies revenue streams and enhances customer loyalty.
• Advertising Platform: Growing ad revenue represents a high-margin opportunity and leverages DoorDash's vast user base and merchant network.
• International Expansion: Strong international growth, particularly through Wolt+, provides additional growth avenues beyond the mature U.S. market.
• Improved Efficiency: Ongoing improvements in unit economics and operational efficiency drive profitability and enhance long-term sustainability.

The Bear Case for DoorDash:

• Intense Competition: The food delivery market remains highly competitive, with rivals like Uber Eats and Grubhub vying for market share.
• Valuation Concerns: DoorDash's high P/E ratio (183.5) and P/S ratio (9.3) suggest that the stock may be overvalued, leaving limited room for error.
• Regulatory Risks: Potential regulations regarding driver classification and delivery fees could negatively impact DoorDash's business model and profitability.
• Economic Sensitivity: Consumer spending on food delivery may decline during economic downturns, impacting DoorDash's revenue and growth.
• Limited Profitability: While improving, DoorDash's profitability remains a concern, and further investments in growth initiatives may delay significant profit generation.

However, not all analysts are singing the same tune. Stifel, while raising its price target to $239, maintains a “Hold” rating, citing valuation concerns. “While ‘encouraged' by the current trends for the core delivery business, paired with the company's scaled advertising platform, the firm remain on the sidelines due to valuation,” the analyst stated.

Wells Fargo, with its “Equal Weight” rating and price target of $280, also strikes a more balanced tone, acknowledging the company's “exceptional execution” but suggesting that the consensus view may already be priced into the stock.

DoorDash's stock is trading at a premium, reflecting high expectations. The company must continue to execute flawlessly and demonstrate sustained profitability to justify its current valuation. The upcoming Q3 results will be crucial in determining whether DoorDash can maintain its momentum and solidify its position as a leader in the evolving food delivery landscape.

As KeyBanc analyst Justin Patterson pointed out, DoorDash's focus on improving the consumer experience, expanding merchants, and reducing average delivery times is creating a positive feedback loop. However, the challenge lies in maintaining this momentum while navigating a competitive and evolving market.