KeyBanc initiated coverage of delivery firms DoorDash (NASDAQ:DASH) and Maplebear (NASDAQ:CART) with a Sector Weight rating as the mixed consumer background and consensus estimates suggest limited upside for either stock from their current fair value estimates.
Restaurant delivery is still growing, KeyBanc says, but grocery delivery competition is intensifying at a time when inflation is still high.
Therefore, KeyBanc sees growth rates for both moderating versus recent years.
Seeking Alpha author Daniel Jones is also neutral on DoorDash (DASH). “I have no doubt that the future for the enterprise looks promising,” he says, but even though the company will do well for itself in the long run, “shares still look pricey.”
Seeking Alpha analysts and Wall Street analysts are largely bullish on both DoorDash (DASH) and Maplebear (CART), more commonly known as Instacart, with a Buy rating for both. Seeking Alpha’s Quant Rating also views DoorDash (DASH) as a Buy.