2023-06-14 08:15:22 ET
An over 50% surge year to date for DoorDash ( NYSE: DASH ) has balanced the risk/reward proposition for investors, according to Gordon Haskett.
The firm advised clients that even an earnings beat in coming quarters may be “no longer enough to drive favorable share price reaction” given the rapid run-up in recent months. In fact, most investors have come to expect a beat, raising the bar further for the company if it hopes to continue its pace of gains in 2023.
“Furthermore, we think the resumption of federal student loan payments for ~27M borrowers in September could weigh on 4Q order volumes with delivery costs well above traditional carryout,” the analysts added. “As such, we believe it’s prudent to reduce our rating to Hold and lower our price target to $72, which represents ~2% downside.”
Shares of DoorDash ( DASH ) dipped 1.6% in premarket action on Wednesday.
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DoorDash cut to Hold at Gordon Haskett on valuation concerns