DoorDash Stock Can Deliver. Why This Analyst Says Now Is the Time to Buy.

DoorDash stock got an upgrade at Jefferies. (Yuki Iwamura/Bloomberg)

Key Points

• DoorDash stock received an upgrade to Buy from Hold by a Jefferies analyst, with a price target increase to $260 from $220.
• The stock dropped after third-quarter earnings, with the fall driven by investor concerns over increased 2026 investments.
• Despite the upgrade, shares were down 3.6% on Wednesday; the stock has climbed 22% this year but dropped 13% since earnings.

DoorDash stock got another upgrade on Wednesday as a Jefferies analyst believes the online food delivery company has set itself up for strong growth ahead.

Analyst John Colantuoni upgraded shares of DoorDash to Buy from Hold and raised his price target on the stock to $260 from $220 on Wednesday. That new price target implies a 23% increase from the stock’s last closing price of $212.08.

Colantuoni’s upgrade comes after shares of DoorDash stock fell 17% after the company reported third-quarter earnings on Nov. 5. Shares dropped on investor concern over DoorDash’s plans to invest “several hundred million dollars” more in new initiatives and platform development in 2026 than 2025.

“The spending ramp is expected to result in ‘slight’ margin expansion at DASH’s legacy business,” Colantuoni wrote. He added that “this represents a significant moderation from prior investor expectations.”

Still, he believes now is the time to buy.

“We believe DASH’s 2026 outlook helped lower expectations, providing flexibility for both long-term investments and upside to consensus,” Colantuoni wrote. “In addition, faster growth in US restaurant delivery over the past four quarters makes us more bullish on the growth runway for DASH’s most profitable business.”

Shares were down 3.6% on Wednesday despite the upgrade. The stock, which has climbed 22% this year, has dropped 13% since earnings.

“DASH’s strong execution and growth algorithm now appear underappreciated,” Colantuoni said.

Other analysts are also optimistic about the company’s growth potentials. Wedbush analyst Scott Devitt upgraded shares of DoorDash to Outperform from Neutral, while maintaining a $260 price target, on Nov. 13.

Devitt wrote in a research note that the increased investments DoorDash is making are “justified, as they will expand DoorDash’s addressable market and bolster the company’s product offerings on a global scale.”

Write to Angela Palumbo at angela.palumbo@dowjones.com