Citizens reiterated a positive stance on DoorDash Inc. while narrowing its valuation expectations, lowering its price target to $250 from $285 and maintaining a Market Outperform rating. At the time of the note, the stock was trading at $176.19, which the firm says leaves roughly 42% of potential upside to its revised target. The shares, however, have slid 27.7% over the past six months.
The research note lists a number of growth drivers that underpin Citizens' continued bullish view. Those drivers include expansion in U.S. grocery and retail, international platforms such as Deliveroo and Wolt, DoorDash’s software services for restaurants, and DashMart Fulfillment Services. Citizens describes DoorDash as a core internet holding and believes the company remains early in its ability to compound growth over multiple years.
Recent company metrics provide some support for that perspective. Citizens highlighted revenue growth of 28% over the last twelve months, with trailing revenue at $13.72 billion. InvestingPro analysis cited by the firm indicates that DoorDash is trading below its Fair Value, suggesting the stock may be undervalued at current market levels.
Citizens framed 2026 as an investment year for DoorDash, saying the company is deliberately focusing on maximizing growth even as it works toward profitability. The firm emphasized that profitability will be an output of scale rather than a consequence of reducing areas of investment. Because management has repeatedly demonstrated execution capability, Citizens said earnings should emerge as DoorDash’s newer businesses mature.
The analyst also signaled that profitability estimates are likely to remain conservative for the rest of the current year while DoorDash continues to deploy capital into growth initiatives. The note pointed to InvestingPro Tips, including an expectation that net income will grow this year, which is one of 17 such tips available to subscribers.
Citizens said another factor behind the reduced target is tougher year-over-year comparisons that complicate near-term forecasting. That acknowledgement accompanies a wider set of analyst reactions to DoorDash’s recent performance and guidance.
On results and peer analyst moves: DoorDash reported solid fourth-quarter 2025 results, with U.S. restaurant marketplace gross order value reaching the second-highest level in the past 15 quarters. In response, several firms adjusted their price targets. Truist Securities raised its target to $340, citing strong results and first-quarter 2026 guidance that showed higher gross order value despite lower adjusted EBITDA. Benchmark lifted its target to $285 on the view that DoorDash is expanding into a broader local commerce platform beyond restaurant and grocery delivery. KeyBanc increased its target to $280, pointing to robust Gross Order Volume trends and improving profitability in newer verticals.
Not all analysts moved targets higher. Piper Sandler lowered its target to $220, expressing concern about increased competition and execution risks, while Guggenheim set its target at $255, emphasizing valuation even as Marketplace Gross Order Value trends beat expectations.
Bottom line - Citizens remains constructive on DoorDash’s long-term prospects, but reduced its near-term valuation to reflect tougher comparisons and an intentional investment phase in 2026. The company’s revenue growth and recent marketplace order trends provide support for that view, while analysts remain divided on near-term execution and competitive dynamics.