UPDATE: UBS Starts DoorDash Inc. (DASH) at Neutral

UBS analyst Lloyd Walmsley initiates coverage on DoorDash Inc. (NYSE: DASH) with a Neutral rating and a price target of $200.00.

The analyst comments "We are bullish on DoorDash's opportunity to grow GOV, scale margins and build a non-food delivery business, but view this as reflected in shares today. Shares trade at a premium to peers and its historical valuation, even when adjusted for growth. Near-term headwinds include lock-up release, reopening in 2022 potentially shifting consumer spending and some risk from reduced US gov't benefits/consumer savings. Given the premium valuation, we would expect a harsh reaction from any potential hiccup. Our $200 price target and Neutral rating are based on a 17x EV/GP (implied 1.2x EV/GOV) on our 2023 estimates, which is supported by historical average EV/GP/growth. We see a 56% upside vs. 32% downside (1.8x skew to the upside)."

For an analyst ratings summary and ratings history on DoorDash Inc. click here. For more ratings news on DoorDash Inc. click here.

Shares of DoorDash Inc. closed at $161.62 yesterday.

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