DoorDash (DASH) is expected to increase its grocery market share in Q2 due to accelerating momentum across its US business, Deutsche Bank said in a Monday note.
The company's Q2 earnings are likely to result in another quarter of upward volume revisions as SecondMeasure transaction and sales growth surged by more than 300 basis points during the quarter on robust gross order value and average order value trends, according to the note.
The brokerage said it expects Q3 gross order value growth guidance of at least 20% with a "clear path to a couple points faster than that to the extent the 1Q beat comes through."
Meanwhile, outlook for H2 adjusted EBITDA will likely mirror an earnings cadence similar to 2023/2024 with improving margins through the year, the analysts wrote.
Deutsche Bank had a buy rating on the stock, while boosting its price target to $315 from $232.
Price: 241.93, Change: +3.14, Percent Change: +1.31
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