Jefferies upgraded DoorDash to buy from hold and raised its price target to $260 from $220—implying ~23% upside—saying recent weakness leaves the company’s execution and growth underappreciated; the firm noted shares are up 26% year-to-date but down 20% over the past 30 days. Analyst John Colantuoni highlighted that planned “several hundred million dollars” of incremental 2026 investment has lowered expectations but could enable an under-promise/over-deliver outcome, with faster growth in high‑margin advertising revenue able to offset roughly $200m of those investments and drive margin expansion alongside U.S. restaurant efficiency gains. Jefferies also pointed to durable secular upside—delivery apps represent ~13% of off‑premise restaurant sales versus a 23% e‑commerce average, DoorDash has ~65% share of U.S. delivery apps but is used by only ~15% of adults and accounts for <6% of meals among active users—supporting further upside from U.S. penetration, international expansion and new verticals.
Jefferies upgraded DoorDash to buy from hold and raised its price target to $260 from $220, implying roughly 23% upside from Tuesday's close; the firm cited that shares, while up 26% year-to-date, have fallen 20% over the past 30 days, leaving execution and growth underappreciated. The analyst flagged that guidance for several hundred million dollars of incremental 2026 investment lowered expectations, creating scope for an under-promise/over-deliver outcome if management executes. John Colantuoni identifies faster growth in higher‑margin advertising revenue as the primary driver of margin expansion, noting advertising alone could offset approximately $200 million of the planned 2026 investments, with the balance coming from efficiency gains and fixed-cost leverage in U.S. restaurant delivery. Jefferies argues upside to consensus and justification for a premium multiple if DoorDash accelerates ad monetization or trims non-core spend. Jefferies highlights a sizable secular runway: delivery apps are ~13% of off‑premise restaurant sales versus a 23% e‑commerce average, DoorDash has ~65% share of U.S. delivery apps yet reaches only ~15% of adults and accounts for under ~6% of meals among active users, implying meaningful penetration upside from U.S. growth, international expansion and new verticals. Realization of this opportunity hinges on advertising monetization and execution of international/new-vertical initiatives, while near-term investor sensitivity is evident in the recent 30‑day stock decline.
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