DoorDash (DASH) Surges as Needham Flags It a Must-Buy Opportunity
DoorDash shares rocket after Needham analysts slap a 'buy' rating on the delivery giant—because nothing says 'bullish' like betting on midnight burrito demand.
Subheader: Why Wall Street Suddenly Loves Your Late-Night Taco Habit
Needham's upgrade sent DASH soaring, proving once again that analysts' crystal balls work best in hindsight. The stock's rally defies logic—just like paying $15 in fees for a $7 meal.
Active traders piled in, chasing the FOMO wave. Because if there's one thing finance bros love more than leverage, it's chasing a moving delivery bike.
Cynical closer: Another day, another 'opportunity'—until the next earnings report turns this happy meal into a unhappy bag hold.
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McTernan noted that DoorDash is on track to double its gross order value within four years of the pandemic, thereby making the sharp decline in the stock price surprising. He estimates that the company can grow its adjusted EBITDA by more than 30% per year, with the Deliveroo acquisition and strong organic sales helping offset the impact of new spending. While the investments won’t immediately boost growth, McTernan believes they are essential for maintaining DoorDash’s current trajectory.
Although the investment amounts may seem large and their returns uncertain for now, McTernan trusts the current leadership based on its past performance. As a result, Needham reiterated its Buy rating on the stock but slightly lowered its price target to $275 per share due to the share price drop. This led to DoorDash shares jumping 6% at the time of writing.
Is DASH Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on DASH stock based on 22 Buys, seven Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average DASH price target of $290 per share implies 40% upside potential.
