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DoorDash at an attractive entry point - Morgan Stanley

Published 02/22/2024, 11:05 AM
Updated 02/22/2024, 11:08 AM
© Reuters. DoorDash (DASH) at an attractive entry point - Morgan Stanley
DASH
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DoorDash (NASDAQ:DASH) was raised to Overweight from Equal-Weight at Morgan Stanley on Thursday, with analysts lifting the price target to $145 from $135 per share.

Analysts told investors they see leading growth and profit execution driving better-than-expected free cash flow for the company.

"DASH’s core restaurant/grocery growth runway remains long, addressing ~$2.6trn of offline spend," they wrote. "Strong DashPass and expansion (grocery/int’l) execution enable us to build 2 sanity check models, increasing our confidence in mid-teens forward GOV growth."

Morgan Stanley also feels that the US restaurant business remains the cash generator, and they see DASH growing adjusted EBITDA at a peer-best 40% CAG.

DASH's post-EPS pullback has created an attractive entry point in the stock, analysts declared.

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