RBC downgrades DoorDash and slashes price target citing slowing order growth
There are a slew of factors weighing on DoorDash that have prompted RBC Capital Markets to downgrade the stock after a rough year. The firm slashed its rating to sector perform from outperform and lowered its price target on the delivery service to $60 from $70. The new target price represents roughly 5% upside to where shares traded at Thursday's close.
"With premium to the multiple given for strong management, strong execution and being the #1 player in the space - we believe a hypersensitivity to more visible deceleration in the coming year poses more downside risk vs. an according acceleration and/or profit preservation via further cost cuts beyond what was announced earlier this week," said Erickson.
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