Update shared on10 Sep 2025
Fair value Increased 1.13%DoorDash’s analyst price target increased modestly to $294.19 as strong Q2 results, ongoing order growth, new verticals, and accretive acquisitions (including Deliveroo) bolstered long-term growth optimism, though rising competition remains a key risk.
Analyst Commentary
- Bullish analysts raised price targets driven by strong Q2 results, including beats on Gross Order Value, revenue, and adjusted EBITDA, combined with continued order frequency growth and positive demand trends.
- Expansion into new verticals, product improvements, and strategic acquisitions (notably SevenRooms and Deliveroo) are seen as accelerating long-term growth and enhancing unit economics, with Deliveroo synergies viewed as underappreciated and significantly accretive to future EBITDA.
- Enhanced membership program strength (especially DashPass), expanding advertising revenues, and persistent improvements in core unit economics are providing several paths for upside to 2026-2027 forecasts.
- Macro factors such as a favorable economic backdrop, reduced China tariffs, and positive sector compounding are supporting upward estimate revisions and higher valuation methodologies into mid-2026.
- Bearish analysts and select major peers (notably Amazon's grocery expansion) remain a risk, with increased competition cited as a potential headwind for growth or profitability in the medium-to-long term.
What's in the News
- DoorDash recently launched high-profile partnerships and services, including all-night exclusive delivery for Waffle House, on-demand home improvement delivery with Ace Hardware, drone deliveries with Flytrex and GoTo Foods in Texas, and a new digital ordering experience with McDonald's, significantly expanding its platform offerings (Client Announcements).
- The company continues to enhance its ecosystem through collaborations, such as integrating Untappd’s beverage catalog for a richer customer experience, entering a multi-year partnership with Ace Pickleball Club, and enabling ALDI Australia’s trial for on-demand grocery delivery in Canberra (Client Announcements).
- DoorDash is leveraging technology and AI to optimize operations, exemplified by expanded supply chain capabilities with RELEX Solutions, and offering innovative features like DashPass Family Sharing and enhanced loyalty benefits through partnerships—e.g., with PC Optimum in Canada (Client Announcements).
- In management and market movements, DoorDash appointed Spotify's head of advertising as Chief Revenue Officer and saw its price target raised to $260 from $196 at UBS, though the firm maintains a Neutral rating (Axios, UBS).
- The stock was removed from multiple Russell value indexes at the end of June 2025 and reported no share buybacks during the period from April to August 2025 (Index Constituent Drops, Buyback Tranche Update).
Valuation Changes
Summary of Valuation Changes for DoorDash
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $290.91 to $294.19.
- The Future P/E for DoorDash remained effectively unchanged, moving only marginally from 54.76x to 55.16x.
- The Consensus Revenue Growth forecasts for DoorDash remained effectively unchanged, moving only marginally from 19.5% per annum to 19.6% per annum.
Disclaimer
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