DASH stock has formed a sweet looking bottom-feeder reversal pattern after a series of analysts actions in the wake of the company’s Q1 financials release.
DoorDash reported Q1 EPS of (34c) versus the consensus estimate of (26c). The company reported Q1 revenue of $1.08B versus the consensus estimate of $993.32M. Total Orders grew 219% year-over-year to 329M, and marketplace GOV grew 222% year-over-year to $9.9B.
The company said, “Consumer behavior on our Marketplace remained attractive in Q1, as we drove strong trends in cohort level order rates saw increased demand in non-restaurant categories, and grew DashPass subscribers on both a Q/Q and Y/Y basis. We believe these results reflect the value we provide to consumers across the vectors of selection, quality, and affordability. As we continue to expand our Marketplace beyond restaurants, our goal is to improve the consumer experience by executing against these same vectors, but in a broader fashion; providing selection across multiple categories, quality and consistency in the experience with all partner merchants, and affordability that spans delivery, pickup, and at-work use cases.”
Wells Fargo analyst Brian Fitzgerald upgraded DoorDash to Overweight from Equal Weight with a price target of $170, up from $165. Fitzgerald thinks DoorDash’s beat and raise is large enough to offset the rotation to “value” that has afflicted growth stocks year-to-date, the analyst tells investors in a research note.
Truist analyst Youssef Squali upgraded DoorDash to Buy from Hold with a price target of $185, up from $180. The analyst cites the company’s stronger than expected Q1 results and “sustained momentum” into FY21 being indicative of its “solid execution” and a growing roster of complementary offerings. DoorDash’s goal of building a marketplace and a broader platform for delivery across geographies is “well underway”, and has been buoyed by the pandemic, Squali tells investors in a research note.
Mizuho analyst James Lee lowered the firm’s price target on DoorDash to $155 from $170 and keeps a Neutral rating on the shares. The company’s gross order value growth beat expectations meaningfully in Q1, driven by continued demand for food delivery and the successful expansion into grocery and other categories, Lee tells investors in a research note. The analyst, however, dropped the price target due to lower industry multiplies.