D.A. Davidson downgraded the stock to "neutral" from "buy"
DoorDash Inc (NYSE:DASH), which started trading just this past Wednesday, is struggling to maintain positive price action in just its fourth trading session. At last check, DASH was down 11.8% at $154.35, after D.A. Davidson downgraded the stock to "neutral" from "buy," while also raising its price target to $150 from $93. The firm sees "little room" for performance hiccups due its current valuation, especially with the increasing regulations, and notes the stiff competition in the food delivery business. Meanwhile, the company also announced a new partnership with Payfare -- creating the DasherDirect platform -- which offers a prepaid Visa card to drivers.
After an initial public offering (IPO) price of $102, the stock soared all the way to $195.50 within its first day of trading -- its current record high. Steadily moving lower each day since, today's negative price action has DASH placed on the "short sell" list.
Coming into today, two of the three analysts in coverage already sport a "hold" rating on DASH, leaving plenty of room for upgrades or fresh brokerage coverage in the future. Meanwhile, the 12-month consensus price-target of $150 is a 2% discount to current levels.