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Investors in DoorDash, Inc. (NASDAQ:DASH) had a good week, as its shares rose 4.7% to close at US$206 following the release of its annual results. Results were roughly in line with estimates, with revenues of US$11b and statutory earnings per share of US$0.29. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for DoorDash
Following the latest results, DoorDash's 39 analysts are now forecasting revenues of US$13.0b in 2025. This would be a sizeable 21% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 606% to US$2.09. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$12.7b and earnings per share (EPS) of US$1.95 in 2025. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.
With these upgrades, we're not surprised to see that the analysts have lifted their price target 16% to US$216per share. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on DoorDash, with the most bullish analyst valuing it at US$246 and the most bearish at US$138 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that DoorDash's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 21% growth on an annualised basis. This is compared to a historical growth rate of 34% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.6% annually. So it's pretty clear that, while DoorDash's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.