DoorDash Inc. (DASH) Partners with BJ's Wholesale Club (BJ) - BofA

BofA Securities analyst Michael McGovern reiterated a Buy rating and $200.00 price target on DoorDash Inc. (NYSE: DASH) after announcing a partnership with BJ's Wholesale Club (NYSE: BJ) where customers (including non-members) can order BJ’s items in the DoorDash application or for same-day delivery through BJs.com. Items available through the partnership will include grocery and home-essentials, which excludes some BJs category (i.e. electronics). BJ’s Wholesale Members will be able to link their membership to the DoorDash app to receive member pricing, while non-members will have higher pricing than in-store.

The analyst stated "We surveyed a basket of 10 items on BJ’s.com vs. BJ’s on the DoorDash application and found that our basket was 15% more expensive on DoorDash than on BJ’s.com, without a BJ’s membership discount". "We expect more partnership announcements on the horizon to act as a catalyst for the stock, with a pipeline of existing Drive merchants that can be converted to Marketplace merchants. With DASH trading below 5x Street revenue (Bloomberg), we continue to see upside with Street expecting relatively limited 18% Y/Y growth for 2022, despite new partnerships and likely adding Wolt in 2Q. We expect Wolt alone could drive 2022 growth toward 25% Y/Y should the acquisition close in 2Q, with new partnerships acting as an additional boost."

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 $114.43 yesterday.

You May Also Be Interested In

• Resideo Technologies (REZI) PT Lowered to $27 at Oppenheimer
• Cellebrite (CLBT) PT Lowered to $15 at TD Cowen
• Tencent Holdings (700:HK) (TCEHY) PT Lowered to HK$625 at Benchmark to Reflect Downward Earnings Revisions