Citizens Financial Group maintained a Market Outperform rating on DoorDash Inc. (NASDAQ: DASH), citing continued revenue momentum and a price target of $240 per share.
The firm’s outlook comes as DoorDash reported second-quarter revenue growth of 36% year-over-year, a figure it highlighted as a key driver of its sustained performance. Citizens’ $240 target implies roughly 7% upside from the stock’s closing price of $221.36 on Tuesday, though it remains below the Street’s highest forecasts.
Regulatory developments in Australia present a modest headwind. Citizens noted that a new minimum remuneration requirement for app-based workers—set at A$31.30 per hour, or about US$22.11—could weigh on DoorDash and Uber Technologies Inc. The Australian minimum wage currently stands at A$26.44 per hour, underscoring the premium placed on gig-economy labor in the country.
Analysts at Citizens also pointed to a broader range of Street estimates for DoorDash, with InvestingPro data showing targets spanning from $172 to $350. Susquehanna raised its target to $250, while Needham reiterated a Buy rating with a $265 target. UBS, maintaining a Neutral stance, lifted its target to $225.
The divergent views reflect both DoorDash’s growth trajectory and the evolving regulatory landscape. DoorDash’s stock closed at $221.36 on Tuesday, slightly below its intraday peak of $223.49. The company’s shares have traded between $172 and $350 over the past year, according to InvestingPro data.
In adjacent developments, autonomous delivery firm Serve Robotics Inc. expanded partnerships with Grubhub and DoorDash. Grubhub’s collaboration now covers Los Angeles, Chicago, and Alexandria, Virginia, while DoorDash’s autonomous delivery network will extend to Washington, DC, and San Jose, California, adding to existing operations in Chicago, Los Angeles, and Miami.
Elsewhere, Lyft Inc. received an upgraded target from Susquehanna, which raised its price target to $18 from $15 while maintaining a Neutral rating. The firm also projected third-quarter gross bookings between $5.5 billion and $5.67 billion, with adjusted EBITDA expected to range from $183 million to $203 million.
