Why DoorDash Stock Ran Up 6.5% Today
Shares of food-delivery service DoorDash (NYSE: DASH) ran up 6.5% through 1:40 p.m. EDT this afternoon -- and you can thank RBC Capital for that.
In an initiation of coverage announced after close of trading yesterday (such that investors weren't able to act on it until today), RBC rated DoorDash stock "outperform" and assigned a $175 price target to the stock, which presently trades for about $151 a share.
DoorDash's "differentiated strategy ... has elevated it into being the #1 player in U.S. restaurant delivery," points out RBC, as the company focuses on growing its gross margins for now (presumably with the intention of working on operating and net margins later). Already, says the analyst, this strategy has helped DoorDash build "a lower fulfillment-cost delivery business" that is beating the competition.
Source Fool.com
