HomeMarket NewsThe DoorDash Drive: Analyst Bullish on Strong Monetization Potential in Home Improvement...

The DoorDash Drive: Analyst Bullish on Strong Monetization Potential in Home Improvement Vertical

Actionable Trade Ideas

always free

doordash photo by diego thomazini on shutterstock

Entering New Markets

DoorDash Inc DASH has struck a partnership with Lowe’s Companies Inc LOW to spearhead its foray into the home improvement market.

Potential Monetization

Benchmark predicts that DoorDash’s entry into new retail sectors such as grocery and convenience is poised to materialize significantly over the next 12+ months.

Analyst’s Optimistic View

The DoorDash Analyst: Mark Zgutowicz has recently started coverage of DoorDash with an optimistic Buy rating and a target price of $165.

The Growth Thesis

The DoorDash Thesis: Impressed by its extensive reach, Zgutowicz believes that DoorDash’s expansion into fresh horizons could yield a more robust revenue and margin growth pace than what the current consensus estimates suggest.

Competitive Landscape

The gap between DoorDash and its β€œwell-funded #2” competitor, Uber Technologies Inc UBER Uber Eats, has been widening. Since 2020, DoorDash has securely maintained a β€œ3x relative share position,” as highlighted by the analyst.

Strategic Advantages

According to Zgutowicz, DoorDash’s edge in network scale, sales and marketing efficiency, and cost optimization, coupled with a marked improvement in grocery profitability over the trailing twelve months, sets the stage for a promising growth trajectory in U.S. grocery Gross Order Value (GOV) and profitability in the near term.

Future Potential

Zgutowicz emphasized the untapped potential of Retail Media advertising for DoorDash, suggesting that it could be a key driver of conversion rates to non-restaurant Gross Order Value in the coming years.

Price Movement

DASH Price Action: As of Thursday’s publication, DoorDash’s stock had climbed by 0.59% to reach $139.60.

Image Credit

Image: Shutterstock

Swing Trading Ideas and Market Commentary

Need some new swing ideas? Get free weekly swing ideas and market commentary from Jonathan Bernstein here: Swing Trading.

Explore More

Weekly In-Depth Market Analysis and Actionable Trade Ideas

Get institutional-level analysis and trade ideas to take your trading to the next level, sign up for free and become apart of the community.