Piper Sandler on Friday reduced its 12-month price target for DoorDash Inc. (NASDAQ:DASH) to $220 from $230 and left its rating on the shares at Neutral. The updated target still implies notable upside relative to the prevailing market price of $173.38, and analyst targets across the market span from $200 to $340, according to InvestingPro data.
The firm signaled that rising competition and execution risk motivated the downward revision. Its note came in the wake of DoorDash's fourth-quarter 2025 results, which the firm described as solid. In particular, the company's U.S. restaurant marketplace gross order value (GOV) reached the second-highest level observed in the last 15 quarters, a point Piper Sandler highlighted when assessing recent operating momentum.
DoorDash reported revenue of $12.63 billion on a trailing 12-month basis, representing 24.5% growth. The company also provided updated guidance and commentary around margins and incremental investment for 2026 that Piper Sandler characterized as better than feared, offering a clearer path to margin improvement in the second half of 2026.
On profitability metrics, DoorDash currently reports a gross profit margin of 51.4%. The company also holds more cash than debt on its balance sheet, a capital structure detail the analyst noted when evaluating the firm's flexibility to fund incremental investments.
Piper Sandler said product and process upgrades to Deliveroo are already producing measurable effects. In response to the quarter and the company's commentary, the firm modestly raised its fiscal year 2026 revenue and EBITDA estimates by 1%.
InvestingPro data shows DoorDash's current EBITDA at $1.02 billion, and the broader analyst community included in that data set continues to anticipate growth in both net income and sales over the course of the year.
'26 Margins Better than Feared & Progressing With Re-platforming; Shares are up +10% following solid 4Q25 results with US restaurant marketplace GOV moving to the second-highest level in the last 15 quarters, plus line of sight to margin improvements in 2H26.
In additional market commentary, Visible Alpha reported that DoorDash's fourth-quarter gross order value and EBITDA beat prior street expectations by roughly 1%. Excluding Wolt, the company's core operations delivered a 25% year-over-year rise in gross order value, continuing the strength seen in the prior quarter.
Analysts outside Piper Sandler have taken a range of actions on DoorDash's valuation following the results. KeyBanc increased its target to $280, pointing to strong Gross Order Volume trends and profitability emerging in new verticals. Guggenheim lowered its target to $255 while still acknowledging robust marketplace GOV trends and significant U.S. restaurant growth. Cantor Fitzgerald trimmed its target to $230, citing investment cost considerations. Needham adjusted its target to $265 on the back of ongoing bookings momentum. Bernstein SocGen reduced its target to $270, noting DoorDash's expansion beyond traditional restaurant delivery into new verticals and services.
These moves reflect a mixed analyst response to DoorDash's recent performance and strategic developments. While operational metrics such as GOV, revenue growth, and gross margin provided support for continued improvement, several firms signaled caution tied to competition, execution, and investment pacing when setting or adjusting their price targets.
Summary of company metrics and analyst actions:
- Price target change by Piper Sandler: $230 to $220, Neutral rating maintained.
- Current market price cited: $173.38; analyst target range: $200 to $340.
- Trailing twelve-month revenue: $12.63 billion, up 24.5%.
- Gross profit margin: 51.4%; EBITDA reported at $1.02 billion in InvestingPro data.
- Operational highlights: U.S. restaurant marketplace GOV at the second-highest level in 15 quarters; core operations (ex-Wolt) GOV up 25% year-over-year.