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Analyst Upgrades DoorDash Stock on Improving Margins

D.A. Davidson, meanwhile, lowered its price target to $60

Deputy Editor
Nov 7, 2022 at 10:00 AM
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The shares of DoorDash Inc (NYSE:DASH) are down 0.6% at $51.20 this morning, despite a bull note from Oppenheimer. The analysts upgraded the delivery service staple to "outperform" from "perform," with a $70 price target, and highlighted DoorDash's improving U.S. restaurant margins and easing competition.  

Conversely, a few days ago D.A. Davidson lowered its price target from $82 to $60, which is still a 13.6% premium to DASH's current perch. Coming into today, analysts were relatively split, which means even more bull notes could be in the pipeline. Specifically, 11 of the 20 in coverage sport a "hold" rating.

An unwinding of pessimism in the options pits could also boost DoorDash stock. At the  International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security sports a 50-day put/call volume ratio of 2.27, which stands higher than 99% of readings from the past year. In other words, the penchant for bearish bets over the last 10 weeks is unusually high. 

When we last checked in on DASH, we noted that earnings could help the equity rise on the charts. Indeed, the company's latest quarterly reported ended up being a boon, with DoorDash stock adding 8.3% in its post-earnings session, helping it to turn in a 9.6% return for the week -- its best since Sept. 9. Still, DASH remains down more than 75% in the last 12 months. 

 

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