Wedbush analysts on Thursday upgraded DoorDash Inc (NYSE:DASH) to ‘Outperform’ from ‘Neutral’, while maintaining their $260 per share target price, saying the company has retained a leading competitive position within the US food delivery market and continues to execute well with its strategic initiatives.
“We believe these initiatives are justified, as they will expand DoorDash's addressable market and bolster the company's product offerings on a global scale," the analysts wrote in a note to clients.
DoorDash stock has dropped about 16% since the company’s third-quarter results, reflecting investor caution over rising investment and margin pressure, but the analysts at Wedbush believe those concerns are overdone.
They added that management’s plans to increase spending on incremental strategic investments through 2026 are expected to pressure margins in the short term but should help the company scale as it expands internationally.
DoorDash shares rose 0.4% to $197.31 in midday trading on Thursday.