Update shared on18 Oct 2025
Fair value Increased 0.85%DoorDash's fair value price target has been modestly increased by analysts to approximately $300.72. This reflects confidence in accelerating revenue growth and improved profit margin projections amid ongoing partnerships and competitive positioning.
Analyst Commentary
Analyst perspectives on DoorDash remain active, with recent research highlighting both strengths and potential challenges for the company’s outlook and valuation.
Bullish Takeaways- Bullish analysts continue raising price targets to reflect accelerating momentum. They cite strong Q2 results and upside in revenue, order volumes, and adjusted EBITDA.
- DoorDash’s expansion into new verticals such as grocery and retail, along with deepened partnerships like those with Kroger, is expected to unlock new growth drivers and improve unit economics.
- Closing the Deliveroo acquisition is viewed favorably. There are expectations for increased GOV acceleration, better marketing efficiency, and improved profitability projected for 2025 and 2026.
- Investments in product improvements are driving higher monthly active users and record high order frequency. This trend is contributing to sustained topline growth and peer-leading EBITDA performance.
- Bearish analysts point to ongoing competitive risks, especially from Amazon’s aggressive grocery expansion and the evolving positioning of Instacart in the online grocery channel.
- Concerns remain about DoorDash’s exposure to potential AI disruption and the current limitations of food delivery partnerships involving autonomous vehicles. In these areas, near-term unit economics present challenges for profitability at scale.
- Some remain cautious about execution risk tied to the integration and investment in new acquisitions. They highlight that growth projections may be vulnerable if integration falls short or competitive responses intensify.
- While many price targets have moved higher, a few analysts keep Hold or Neutral ratings. These analysts cite the need for continued margin expansion and clarity on longer-term cost structure improvements to support premium valuations.
What's in the News
- DoorDash is testing autonomous flying drone deliveries from a new R&D warehouse in San Francisco to advance its autonomous delivery technology (SF Chronicle).
- DoorDash has hired the former head of Spotify's advertising business as its new Chief Revenue Officer. This move signals a focus on scaling advertising and revenue streams (Axios).
- UBS raised its price target for DoorDash to $260 from $196 and maintained a Neutral rating on the shares (UBS).
Valuation Changes
- The Fair Value Price Target has risen slightly to $300.72, up from $298.19.
- The Discount Rate has decreased marginally to 8.33% from 8.35% previously.
- Revenue Growth projections have edged higher and are now at 20.17%, compared to the prior estimate of 19.95%.
- The Net Profit Margin is projected to improve, increasing to 15.65% from 15.52%.
- The Future P/E ratio has fallen slightly to 54.92x from 55.23x previously.
Disclaimer
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