DoorDash's (DASH) outlook should help address worries over its margin which has put the stock under pressure since Q3 results, BofA Securities said in a Thursday report.

The company kept its full-year margin guidance at a slight improvement for core year-over-year, and indicated margins would turn more positive in H2, the note said.

"The unit economics of grocery and retail are expected to turn positive in 2H, which should give Street growing confidence in value of the business," the report said.

On its Q4 performance, the note said the firm posted better-than-expected gross order volume and EBITDA, while revenue was slightly below estimates on lower take rates at Deliveroo.

"Overall, healthy growth, with Deliveroo GOV accelerating since acquisition," the report said.

BofA raised its price target to $272 from $260 while reiterating its buy rating on the stock.

Price: 179.12, Change: +5.74, Percent Change: +3.31