Proactive Investors - Analysts at Wedbush have raised their price target for DoorDash (NYSE:DASH) after it reported strong second quarter 2023 results.
For the quarter, DoorDash posted a loss per share of $0.44, an improvement from a loss per share of $0.72 in the comparable quarter in 2022.
Analysts have been expecting a loss per share of $0.46.
Revenue was $2.13 billion, up from $2.04 in the year-ago quarter and ahead of the consensus estimate of $2.02 billion.
Marketplace growth was $16.46 billion compared to the forecast $16.1 billion, and total orders grew 25% year-over-year to 532 million.
“DoorDash continues to deliver year-over-year margin expansion and incremental free cash flow improvement driven by operational efficiencies and stronger unit economics, particularly in newer business including grocery/retail verticals and international markets,” Wedbush's analysts wrote in a note to clients.
The analysts raised their price target for DoorDash from US$75 to US$85 as their estimates move moderately higher in addition to reiterating their ‘Neutral’ rating on the stock.
DoorDash shares traded at $85.56 on Thursday afternoon.
“We are raising our estimates following this quarter's results and highlight rising international penetration and new vertical adoption,” the analysts explained.
“The company is executing on initiatives to drive order frequency across all cohorts, in addition to improving take rates through operational improvements which are contributing to higher margins.”