DoorDash (DASH) will likely post strong Q1 results this week and the delivery company also projecting continued growth in its gross order volume for the quarter, analysts at BofA Securities said on Monday.
The BofA analysts are expecting DoorDash to report GOV of around $23.0 billion in Q1 when it posts financial results for the three months ended March 31 on Tuesday, topping the consensus views expecting GOV of $22.9 billion.
They also are looking for the company to forecast Q2 GOV in a range of $23.0 billion to $23.4 billion, reflecting some uncertainty with the broader macro economy but little direct impact resulting from US tariffs on imported goods.
DoorDash management likely will be conservative about the company's prospects, the BofA analysts said, noting that a late Easter this year and weaker US dollar compared with other currencies could weigh slightly on its Q1 results and rein in their relative enthusiasm for Q2 and beyond.
Third-party data also indicates some slowing at DoorDash during Q1 from the prior quarter, although not as pronounced as the Wall Street consensus and showing a strong rebound during April, the BofA analysts said. Recent Q1 results by rival delivery company Instacart (CART) also suggest some positive read-throughs for DoorDash, they said, with volume growth continuing to pick up speed although order size declined.
Overall, the BofA analysts reiterated their buy stock rating for DoorDash, explaining that while a slowing economy could eventually lead consumers to trade down to lower-cost meals, bears may be underestimating how the "convenience factor" for customers could help the company maintain its forward momentum.
They also maintained BofA's $235 price target for DoorDash shares, reflecting a multiple of around 18 times the company's projected 2026 earnings before interest, taxes, depreciation and amortization coupled with the addition of new or expanding verticals, including grocery deliveries as well as flowers, homewares, cosmetics and other goods.
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