Bank of America expects DoorDash to post second-quarter core profit and gross order value above Wall Street consensus.
DoorDash’s (DASH) retail sentiment improved to ‘bullish’ from ‘neutral’ territory a day ago, according to Stocktwits, heading into the food delivery firm’s second-quarter results after markets closed on Wednesday, with investors and analysts looking forward to commentary on consumer demand and market share gains.
The message volume on DoorDash was at ‘normal’ levels, according to data from Stocktwits. Shares of the company were up 1% during midday trading.
On Monday, Bank of America raised its price target on DoorDash to $285 from $245 and maintained a ‘buy’ rating, according to TheFly.
The brokerage said it saw strong growth data points so far for June and July. It noted that DoorDash’s gross order value and earnings before interest, taxes, depreciation, and amortisation (EBITDA) estimates for the second quarter would come in above Wall Street consensus.
DoorDash still has room for sentiment improvement, and third-quarter gross order volume guidance could have upside to Wall Street estimates, Bank of America added.
DoorDash has been expanding into groceries and retail to compete with Instacart (CART), which has deep partnerships in grocery and recently partnered with Uber Eats, where Instacart customers can use the platform to order from Uber Eats restaurant partners across the U.S.
The company expected to post second-quarter net revenue of $3.16 billion, a 24.6% rise year-over-year, and earnings per share (EPS) are estimated to be $1.07, according to data compiled by Fiscal AI.
DoorDash stock has jumped over 53% so far this year and gained 112% in the last 12 months.
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