Bank of America ups DoorDash price target on growing advertising opportunities
Bank of America is betting on DoorDash to add to its massive gains this year. The bank reiterated its buy rating on the food delivery app and raised its price target to $245 per share from $230. Analyst Michael McGovern's renewed forecast implies that shares of DoorDash could rally 12% from their Wednesday closing price. DoorDash stock has already surged 30% in 2025. DASH YTD mountain DASH YTD chart As a key catalyst, McGovern zeroed in on advertisements as a major source of margin growth. "Today, DASH announced its 'most significant update to its advertising platform to date,' with AI-powered ad product launches and an acquisition of adtech platform Symbiosys," he wrote. "New Restaurant ad features include: 1) Customized AI Campaigns for targeting & discounts; 2) Interest Targets and Category Share insights to help restaurants target food categories; 3) Reporting & Financial Reconciliation tools for more granular reporting/attribution and marketing spend details." On the brands side, new features include sponsored brand enhancements, brand manager reporting metrics and sponsored product ads. Meanwhile, DoorDash's acquisition of Symbiosys, worth $175 million, drives ad collaboration between retailers, restaurants and brands. Cross-business synergy could include allowing a restaurant customer to also add a consumer packaged good to their basket. McGovern added that DoorDash already disclosed last year that it had crossed an annual ad revenue run rate of more than $1 billion, a mere three years after launching its ad platform. It now boasts more than 150,000 advertisers. "Per DASH, this represents the fastest growing "retail media network in history," McGovern said. "With DASH US likely still below 1.5% Ad Penetration (less than half of CART, and still below Uber Delivery penetration), we see a long runway for DASH's ad growth from here."
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