Kessler saw a large total addressable market for food delivery.
DoorDash has established itself as the leading food delivery platform in the U.S. with a 50% plus market share, Kessler noted.
DoorDash offered significant value for its three constituents, including merchants, consumers, and Dashers, observed Kessler.
Kessler expected ~15% long-term revenue growth through continued consumer delivery adoption and increased frequency of orders, further merchant expansion, expansion outside of the core restaurant category, and International expansion.
He believed DoorDash could achieve long-term EBITDA margins of 25%+ through scale efficiencies.
Additionally, he believed DoorDash could show more meaningful operating leverage as it reinvested for growth in its core business and adjacencies.
He acknowledged that investors in this current environment have become more valuation sensitive and may seek more significant near-term margins and cash flow.
Price Action: DASH shares traded higher by 3.07% at $70.13 on the last check Monday.
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