Citizens Financial Group reiterated its buy rating on DoorDash Inc. on Friday, citing efficiency gains from the company's artificial intelligence initiatives and strong revenue growth.
DoorDash's stock has climbed 34% over the past six months, closing at $236.74 on Thursday, while its market capitalization stands at $102.6 billion. The company's price-to-arnings ratio is 121.77, reflecting elevated valuation metrics. Citizens maintained a $250 price target on the shares, while Susquehanna raised its target to $250 from $225 and Argus increased its target to $270 from $190.
The firm's recent AI deployment involved a multi-agent system that automated the cleanup of stale feature flags across 623 repositories. The system generated usable pull requests for 45 of the 50 most recent flags, with an average cost of $4.79 and time investment of 13.8 minutes per flag. No bugs or regressions were reported as a result of the automation.
DoorDash's revenue grew 34% over the last twelve months. Susquehanna reported a 36% year-over-year revenue increase in the second quarter, or 24% excluding the Deliveroo acquisition. Eight analysts have revised earnings estimates upward for the upcoming period, according to the firm.
The company also expanded its partnership with Serve Robotics, adding autonomous sidewalk delivery services in Washington, DC, and San Jose, California. The collaboration now covers Chicago, Los Angeles, Miami, and the two new markets. The expansion follows Australia's introduction of a new minimum pay requirement for gig workers, which may influence operational costs in the region.
