Needham has lowered its price target for DoorDash Inc. to $265 from $275, while keeping a Buy rating on the shares. The firm said the change reflects expectations for elevated investment activity that will reduce adjusted EBITDA in the first half of 2026, even as a portion of those costs is projected to roll off and support improved results in the second half.
The $265 target is underpinned by a valuation multiple of 25 times Needham’s 2027 adjusted EBITDA forecast. That target remains substantially above the stock’s most recent trading level of $173.38, and InvestingPro data cited by market participants shows analyst price targets in a range from $200 to $340.
Needham pointed to continued strong bookings momentum at the company, noting that DoorDash has traded at a premium valuation relative to Uber over the past year. The premium is attributed to perceptions of lower terminal value risk for DoorDash’s model. That valuation gap is visible in standard metrics: DoorDash’s reported price-to-earnings ratio stands at 98.49 and its enterprise value-to-EBITDA multiple is 71.03. At the same time, InvestingPro data indicates a low PEG ratio of 0.16, which the data service interprets as suggesting the stock may be reasonably valued when adjusted for expected growth rates.
In revising estimates, Needham trimmed its adjusted EBITDA projection for the first half of 2026 in recognition of expected investment spending. The firm simultaneously raised its outlook for the back half of 2026 on the view that some investment-related costs will diminish later in the year. Needham also said DoorDash’s growth should benefit from ongoing platform investments, even as the primary uncertainty for the stock centers on how large and sustained the company’s investment program will be.
Other broker commentary and company developments have surfaced alongside Needham’s note. Bernstein SocGen Group reduced its own price target on DoorDash to $270 while retaining an Outperform rating. Stifel adjusted its target to $224, framing the change around expectations for the company’s first full quarter results following integration with Deliveroo.
Operational moves by DoorDash during this period include a national partnership with athletic retailer Hibbett, under which DoorDash will offer on-demand delivery of footwear, apparel and accessories across the Southeast and Southwest. The company is also extending its business beyond restaurant delivery into new verticals such as logistics services and software solutions, a strategic direction referenced in analysts’ notes.
Competitive dynamics have also influenced investor sentiment. Grubhub’s decision to remove delivery and service fees on large orders has exerted pressure on DoorDash and Uber shares, according to market reporting. Investors have expressed concern about a fresh investment cycle that could cost hundreds of millions of dollars in 2026, yet some brokerages continue to maintain constructive ratings - Bernstein reiterated an Outperform rating and a $285 price target despite those concerns.
The mix of valuation questions, investment timing and competitive moves leaves DoorDash’s outlook subject to debate among analysts. Needham’s adjustment illustrates how expected near-term investments can shift earnings assumptions while leaving longer-term growth prospects tied to platform expansion.