DoorDash Upgraded at Piper Sandler Due to Strong Management Performance

On Friday, DoorDash (NASDAQ:DASH) received an updated assessment from Piper Sandler, transitioning from Underweight to Neutral. The financial advisory firm also set a new target price of $127 for DoorDash shares.

Piper Sandler’s decision to upgrade its stock rating for DoorDash came after the company highlighted its effective management performance. Despite concerns about the delivery company’s risks in a declining economy, the firm acknowledged that customers’ meal ordering habits developed during the COVID-19 health crisis were continuing into the post-pandemic period.

The financial analysts’ review also included a valuation assessment indicating that DoorDash had the highest stock price in its category based on the estimated 2025 Price/Earnings (P/E) ratio measured using GAAP (Generally Accepted Accounting Principles). This valuation assessment suggests that the financial market has already priced in much of the company’s potential future positive outcomes into its current stock price.

In determining the new target price, analysts applied a Discounted Cash Flow (DCF) calculation resulting in a valuation of $127. The adjustment to a Neutral rating reflects a change in the firm’s view, indicating that the previous Underweight assessment is no longer appropriate considering DoorDash’s current status and future expectations.

source: prepared by Melisa Beğiç

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