DoorDash (DASH) can sustain multi-year growth and keep investing while still lifting profitability as its core business accelerates and new verticals scale, Morgan Stanley said in a note Thursday.

Morgan Stanley said record DashPass signups should support more durable demand because members spend about 2.5 times more than non-members, and it also pointed to double-digit new customer growth in Q4 of 2025 in US restaurants.

The company expects grocery and retail unit economics, measured as gross margin excluding stock-based compensation and depreciation and amortization, to turn positive in H2, and it expects international contribution margin, excluding its international unit Wolt, to turn positive in H2 as well, the investment firm noted.

DoorDash's US grocery and retail business is scaling, with the company adding more new consumers in Q4 2025 than any other period, alongside improving retention and order frequency, Morgan Stanley said.

Morgan Stanley kept an overweight rating and lowered its price target to $275 from $300, mainly on broader market volatility and peer multiple compression, while still seeing about 40% upside for DoorDash.

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