DoorDash, Inc.
Thesis
We recommend a BUY for DoorDash, an on-demand delivery business that we believe is positioned to outperform expectations due to durable growth in US Restaurants, improving profitability in New Verticals and International, and underappreciated margin expansion potential from operating leverage. Our 3-year price target of $318 represents 80% upside and a 22% IRR, based on 10x EV/EBITDA on our 2030 EBITDA estimates.
Did it work?
While DoorDash has experienced a positive price performance of +15.2% since the pitch, only 4 months have elapsed since the recommendation, which is less than a sixth of the stated 3-year horizon. This interim return, while positive, does not provide sufficient evidence to conclude that the thesis has fully played out or failed. The long-term growth and margin expansion potential remain to be seen.
Raw excerpt
No raw excerpt stored.