DoorDash Inc (NYSE:DASH)’s first quarterly operating profit since 2020 has prompted Wedbush analysts to hike forecasts for the food delivery firm.
Results on Wednesday showed DoorDash had generated $107 million in operating income over the three months to September, against a $108 million loss a year earlier.
This came as total orders climbed by 18% to 643 million, with the value of these increasing 19% to $20 billion, aiding metrics in largely beating market expectations across the board.
Wedbush highlighted the “healthy” growth had benefited from strength in new verticals, such as grocery deliveries, and international markets.
“Broadly, we are encouraged by the tangible progress management has made to deliver stronger unit economics while capturing growth in newer segments of the business,” analysts said.
Estimates for order values and adjusted pre-tax earnings for the coming quarter were hiked by Wedbush as a result.
Adjusted earnings should hit $556 million, rather than the $508 million previously forecast, Wedbush said, with order values seen 18.3% higher at $20.9 billion, against expectations for $20.4 billion beforehand.
Wedbush also hiked its share price target for DoorDash from $125 to $160 and reiterated a ‘neutral’ rating.
Shares ticked up 1.3% to $157.23 on Thursday.