DoorDash Inc DASH has struck a chord with Lowe’s Companies Inc LOW to venture into the realm of home improvement.
The potential for generating revenue from the company’s fresh retail avenues such as grocery and convenience is poised to materialize in the coming year, as per a bullish analyst report.
The DoorDash Analyst: Mark Zgutowicz, the analyst in the spotlight, has kickstarted DoorDash’s journey with a resounding Buy rating and a target price of $165.
The DoorDash Thesis: Given its vast reach, DoorDash’s expansion into new sectors may yield a surer stream of income and enhanced profit margins than what the current consensus reflects, Zgutowicz expressed in the initiation guide.
The chasm between DoorDash and its well-backed runner-up, Uber Technologies Inc’s UBER Uber Eats, continues to widen. DoorDash has comfortably maintained “a 3x relative share position” against Uber Eats since the year 2020, according to the analyst’s insights.
Zgutowicz emphasized, “DoorDash’s edge in network scale, sales and marketing efficiency, and economies of scale, along with a notable improvement in grocery sector profitability over the trailing twelve months, lays the groundwork for a positive turn in U.S. grocery gross order value and profitability contribution in the near term and beyond.”
He further added, “DoorDash is yet to fully explore Retail Media advertising potential, a significant aspect to watch in terms of engagement levels with non-restaurant gross order value over the following years.”
DASH Price Action: As of the time of publication on Thursday, DoorDash’s shares had surged by 0.59% to $139.60.
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