Oppenheimer upgrades DoorDash to Outperform on improving margins

Oppenheimer analyst Jason Helfstein upgraded DoorDash to Outperform from Perform with a 12-18 month price target price target of $70. The company’s increased disclosure shows improving U.S. restaurant margins, Helfstein tells investors in a research note. The analyst forecasts DoorDash’s U.S. restaurant contribution margins improving from 5.7% in 2022 to 6.1% in 2025, with international and U.S. non-restaurant contribution margins improving from negative 13.4% to negative 2.4%. In addition, competition is easing on the challenging fundraising environment, and DoorDash can leverage its position to invest profitably and gain share as competitors pull back, Helfstein contends.