Goldman Sachs Group Inc (NYSE:GS, ETR:GOS) has reinstated its ‘Buy’ rating on food delivery platform DoorDash Inc (NYSE:DASH), setting a 12-month price target of $315 following the company’s acquisition of Deliveroo.
The firm wrote that the target implies roughly 22% upside from current levels and reflects what it sees as an attractive risk/reward profile relative to other large-cap companies.
“With the close of the Deliveroo acquisition, we reinstate a rating on DoorDash at Buy, with a $315 12-month price target,” the analysts wrote, noting that the company is positioned as a category leader in local commerce and logistics.
Goldman Sachs highlighted DoorDash’s diversified portfolio, including DashPass, Drive, Storefront, and DashMart, along with growing international exposure.
The analysts wrote that most of their industry work and channel checks continue to point toward strong operational momentum in the delivery space, spanning both food delivery and an expanding mix of local commerce initiatives.
They expect this trend to support potential upside in gross order volume (GOV) growth rates in the second half of 2025.
Goldman Sachs added that investors are likely to focus on two main themes in the near term: the rate of GOV and revenue growth, particularly amid mixed consumer behavior tied to household income levels, and DoorDash’s ability to execute across an expanding set of retailer and inventory partners to sustain compounded growth.
The firm updated its model to include DoorDash’s core operations, including Wolt, and Deliveroo.
“Relative to our previously published model, standalone DoorDash has outperformed on GOV, with Q1 actuals 0.4% above prior estimates and Q2 roughly 5% above,” the analysts wrote, adding that they are raising core GOV estimates for 2025 to 2027 by 5% to 10%.
Goldman Sachs projects that, following the Deliveroo integration, DoorDash will target accelerating growth for the UK-based asset, increasing GOV from high-single-digits to low-teens, which may lead to lower incremental EBITDA margins at Deliveroo in the near term.
Looking further ahead, the firm forecasts DoorDash generating a 2026 to 2028 revenue CAGR of approximately 19%, driven by its core delivery platform, expanding local commerce, and Deliveroo integration.
By 2028, it expects a GAAP EBITDA margin of around 20%, up from roughly 12% in 2025, as the company scales its operations.
Goldman Sachs noted that DoorDash management remains focused on long-term growth rather than short-term margin optimization.
DoorDash will report its Q3 earnings on November 5 after US markets close.