DoorDash (DASH) Shares Rally on 'Strong' Results, Analysts See More Upside

August 5, 2022 5:52 AM EDT
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Price: $72.48 -4.05%

Rating Summary:
    15 Buy, 11 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 8 | Down: 42 | New: 10
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Shares of DoorDash (NYSE: DASH) are up more than 12% after the food delivery company reported Q2 results that beat expectations.

DoorDash reported a Q2 loss per share of 72c, compared to a loss per share of 30c in the year-ago period. Revenue came in at $1.61 billion, up 30% YoY and topping the expected $1.52 billion. Market place gross order value hit $13.08 billion in the quarter, up 25% YoY and above the analyst estimates of $12.72 billion.

For Q3, DoorDash expects adjusted EBITDA in the range of $25 billion to $75 million, while analysts were looking for $52.5 million. Marketplace gross order value is estimated to be in the range of $13 billion to $13.5 billion, above the estimates of $12.98 billion.

For the full fiscal year, DASH expats adjusted EBITDA in the range of $200 million to $500 million, largely above the consensus estimates of $237.4 million. The company expects FY marketplace gross order value of $51 billion to $53 billion, compared to analyst expectations of $51.97 billion.

Citi analyst Ronald Josey hiked the price target to $129 from $119 as the results showed ‘resilient’ demand.

"We emerge from 2Q22 results incrementally positive on shares of DoorDash… We recognize the potential risks a slowing macro could have on demand, but we believe DASH’s self-funding model can preserve profitability if needed and we reiterate our Buy rating,” Josey wrote in a note.

JMP analyst Andrew Boone said the results were “strong” and prove that DASH is “the most innovative business within the delivery industry.”

“We believe the company has multiple levers to sustain growth as it expands into non-restaurant verticals, grows geographically, and offers restaurants more services. Nearer term, in our view, with consumers now clearly habituated to delivery as order consistency continues across income brackets despite inflationary pressures, we come away from the quarter feeling better about revenue and profitability visibility as we continue to view the risk/reward favorably in shares,” Boone told clients in a note.

By Senad Karaahmetovic

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