Analysts maintain a Buy rating on DASH with a $272 target, forecasting 44% upside despite a 21% year-to-date decline.
DoorDash (DASH) has fallen 21% year-to-date as investors worry inflation and reduced disposable income may pressure consumer spending and delivery margins. The decline reflects broader concerns about discretionary spending in a high-cost environment.
Despite the drop, analysts remain optimistic, with a 12-month average price target suggesting 44% upside from current levels. Bank of America Securities reiterated a Buy rating on June 15, setting a $272 target, citing long-term recovery potential as AI infrastructure matures.
The stock’s underperformance is partly attributed to investor rotation into semiconductor and hardware stocks tied to AI infrastructure. BofA expects this trend to reverse once hardware capacity aligns with demand, benefiting internet stocks like DoorDash.