DA Davidson adjusted its price target on DoorDash Inc. (NASDAQ: DASH) downward to $224 from $260, while keeping a Neutral rating on the delivery platform's stock. The move followed DoorDash's fourth-quarter results, which the firm said came in slightly ahead of what it had anticipated.
In its review of the quarter, DA Davidson noted that gross order value exceeded the firm's estimate by about 1%, and adjusted EBITDA likewise beat projections by roughly 1%. Those modest outperformance indicators came against a stock price that, at the time of the note, was trading at $173.47.
The paper observed recent market movement in the shares, pointing to a 9.9% gain over the past week while also noting a 27.7% decline over the prior six months. Against that backdrop, DA Davidson called attention to valuation as a constraining factor for further upside.
Operational progress and longer-dated economics
DA Davidson highlighted continued strong execution in DoorDash's core U.S. business. The firm also described ongoing development in DoorDash's newer verticals, specifically grocery and retail. Importantly, DA Davidson expects the unit economics for these segments to turn positive in the second half of 2026, indicating a timeline for when these lines might contribute profitably to the overall business.
Valuation considerations
Maintaining a Neutral rating, DA Davidson framed its stance as a balance between DoorDash's execution track record and its sizable addressable market for local delivery, set against what the firm views as the stock's current valuation. The note identified that, even after recent declines, the shares trade at 22.5 times 2026 enterprise value to EBITDA.
The report referenced analysis from InvestingPro showing a PEG ratio of 0.13, a metric that the analysis suggested indicates the stock is attractively priced relative to its growth trajectory. The InvestingPro platform was also noted as offering additional research materials for DASH, including detailed fair value analysis and Pro Research reports.
Risks and execution caveats
DA Davidson flagged specific execution risks it considered in its assessment, calling out the integration of the Roo acquisition and DoorDash's broader technology re-platforming efforts as items that could complicate progress. Those integration and re-platforming activities were presented as additional considerations in the firm's overall view.
Analyst divergence after the quarter
Following DoorDash's fourth-quarter 2025 report, other firms issued contrasting updates. Truist Securities raised its price target to $340, citing results that met expectations and first-quarter 2026 guidance indicating higher gross order value. Benchmark lifted its target to $285, highlighting expansion into local commerce beyond restaurant and grocery delivery. KeyBanc increased its target to $280, pointing to robust gross order volume trends and improving profitability in newer verticals.
On the other side of the ledger, Piper Sandler trimmed its target to $220, attributing the change to heightened competition and execution risks despite DoorDash's strong U.S. restaurant marketplace performance. Citizens lowered its target to $250 while maintaining a Market Outperform rating and emphasizing growth potential across sectors such as U.S. grocery and retail.
These shifts reflect a range of analyst views on DoorDash's prospects, with some firms emphasizing near-term operational strength and potential in newer verticals while others point to valuation and execution risks as limiting factors for the shares.
Conclusion
DA Davidson's reduction in the price target for DoorDash centers on valuation constraints despite incremental beats in the fourth quarter and an ongoing path to profitability for non-restaurant verticals. The firm kept a Neutral stance, balancing the company's operational progress and market opportunity against the multiple at which the stock currently trades. Divergent actions from other brokers after the earnings release underscore differing interpretations of DoorDash's growth trajectory and near-term risks.