Home / Business and Economy / DoorDash Price Target Slashed, Still a Buy?
DoorDash Price Target Slashed, Still a Buy?
6 May
Summary
- Raymond James lowered DoorDash's price target to $225 but maintained a Strong Buy.
- Gas-related headwinds are projected to reduce EBITDA guidance.
- DoorDash expands its services through partnerships in Canada and with Lyft.
Raymond James recently decreased its price target on DoorDash (DASH) to $225 from $275, though it reaffirmed a Strong Buy rating. The firm anticipates that gas relief initiatives will create significant headwinds, potentially pushing headline EBITDA guidance below market expectations. However, gross order value is projected to surpass consensus estimates for both the first and second quarters of 2026.
These gas-related headwinds are quantified, with an estimated $15 million impact in Q1 2026 and $75 million in Q2 2026 from direct gas relief and cash back programs. Despite these challenges, DoorDash is actively expanding its operational footprint. A major new partnership with Empire Company Limited will add over 1,000 grocery stores across Canada to its delivery platform, including banners like Sobeys and Safeway.
Furthermore, DoorDash has extended its partnership with Lyft to Canada, offering DashPass members exclusive discounts on rideshares. These strategic moves underscore DoorDash's commitment to growth and enhanced service offerings, even as analysts adjust their short-term financial projections.
