DoorDash price target raised to $245 from $230 at BofA on new ad platform

DoorDash Inc. (NASDAQ:DASH) received a price target increase to $245 from $230 at BofA Securities on Wednesday, with the firm maintaining its Buy rating following the company’s announcement of significant advertising platform updates. The stock, currently trading at $217.80, has delivered an impressive 92.7% return over the past year, though InvestingPro analysis suggests the stock is currently trading above its Fair Value.

BofA’s decision comes after DoorDash unveiled what it described as its most substantial advertising platform enhancement to date, featuring new AI-powered ad products and the acquisition of adtech platform Symbiosys.

The updated restaurant ad features include AI-customized campaigns for targeting and discounts, interest targets and category share insights to help restaurants target food categories, and improved reporting and financial reconciliation tools that provide more detailed reporting, attribution, and marketing spend information.

For brands and consumer packaged goods companies, DoorDash introduced sponsored brand enhancements with new video formats, display images, and product carousels, along with brand manager reporting metrics that include video views and brand halo insights.

The company is also expanding its sponsored product ads to global search, which will reach customers searching for specific items within alcohol, retail, and other categories.

In other recent news, DoorDash announced an expansion of its advertising platform with new AI tools and the acquisition of ad tech platform Symbiosys for $175 million. This move aims to enhance DoorDash’s offsite advertising capabilities and is part of a broader strategy to grow its commerce and advertising platform. The company also reported that its advertising services now reach over 150,000 advertisers across more than 30 countries, with an annualized advertising revenue run rate expected to exceed $1 billion in 2024. Additionally, DoorDash has increased its convertible notes offering from $2.0 billion to $2.5 billion, with the funds intended for general corporate purposes, including potential acquisitions and share repurchases. Analyst firm Stifel initiated coverage on DoorDash with a Hold rating and a $198 price target, noting the company’s strategic international expansion and potential in the advertising sector. Meanwhile, Truist Securities maintained a Buy rating with a $230 target, citing DoorDash’s strong growth in gross spend and successful customer acquisition strategies. In separate news, Coco Robotics, backed by OpenAI CEO Sam Altman, raised $80 million in new funding to expand its delivery robot operations. This funding round was led by venture capital firm SNR and included participation from other investors, bringing Coco Robotics’ total funding to over $110 million.

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