Highlights

  • Raymond James raises DoorDash rating from 'Outperform' to 'Strong Buy' on Deliveroo deal potential.
  • New USD 260 price target implies 13% upside; bull case scenario suggests USD 350 per share.
  • Mid-to-high teen EBITDA gains forecasted starting 2026 from operational and advertising synergies.

DoorDash Inc. (NASDAQ: DASH) received an upgraded stock rating from Raymond James on Monday, with the brokerage citing significant upside from the company’s recently announced acquisition of Deliveroo. The firm revised its rating from ‘Outperform’ to ‘Strong Buy’, and raised its price target from USD 215 to USD 260, implying a 13% premium over the most recent share price.

In a research summary cited by The Fly, Raymond James highlighted that the market has yet to fully factor in potential gains from the Deliveroo transaction, which is expected to close in the fourth quarter of this year. The acquisition was announced in May at a valuation of USD 3.8 billion and is subject to regulatory approvals in the UK and U.S.

Raymond James outlined a bull case valuation of USD 350 per share, driven by “untapped synergies” with Deliveroo, growing advertising revenue, and longer-term operational benefits, including possible automation. The firm also projects EBITDA accretion in the mid-teens by 2026, rising to the high-teens by 2027, as integration efficiencies and revenue scale take effect.

The announcement follows a period of relative momentum in DoorDash’s stock. Since the deal was announced on May 6, shares have climbed 12.3%, and they are up 37.3% year-to-date. Despite this, Raymond James maintains the view that the stock remains undervalued relative to its long-term growth trajectory post-acquisition.

Analyst consensus, according to data from Koyfin, places the average price target at USD 217.74, suggesting that Raymond James’ new forecast is among the more optimistic in the coverage group.

Investor sentiment among retail traders also showed movement. On Stocktwits, the sentiment shifted from "bearish" to "neutral" late Monday, reflecting cautious optimism in the wake of the rating upgrade.

While market participants weigh the Deliveroo integration risk and deal timeline, Raymond James’ revised outlook underscores a view that the transaction may create shareholder value through increased scale and diversified geographic reach.