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By Dhirendra Tripathi
Investing.com – DoorDash stock (NYSE:DASH) traded 2.7% higher Wednesday after Evercore upgraded it to outperform with a price target of $256, a climb of more than 74% from its current level of $147.
The brokerage cited strong growth drivers and robust fundamentals at the company for its optimism. According to analyst Mark Mahaney, DoorDash is a proven structural Covid winner, having grown third-quarter revenue 45% year-on-year.
DoorDash’s platform is beginning to expand dramatically with non-food delivery, white label logistics and international expansion, the analyst wrote in a note.
The analyst said the brokerage is reasonably confident that there’s an upside to the company’s fourth-quarter 2021 and first-quarter 2022 street estimates.
In a 7-billion-euro deal (around $8 billion) announced Nov. 9, DoorDash said it will buy Wolt, a Finnish technology company that makes it easy to discover and get items from local restaurants, grocery stores and other local shops delivered to homes and offices. Wolt is present in 23 countries.
Over the last six months or so, DoorDash has partnered with companies such as Albertsons (NYSE:ACI) and Beyond Meat (NASDAQ:BYND) to deliver to customers their choice of products from these places.