DoorDash Stock Eyes Fresh Closing Highs After Bull Note

The firm raised its price target to $255 from $190

Assistant Editor
Sep 16, 2021 at 10:19 AM
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The shares of DoorDash Inc (NYSE:DASH) are up 6.3% at $223.11, after Bank of America upgraded the stock to "buy" from "neutral," while also raising its price target to $255 from $190. The firm sees plenty of upside this year, as well as a "robust" five-year growth opportunity thanks to increased online ordering of grocery, convenience products, and alcohol. 

Coming into today, the majority of analysts were hesitant toward DoorDash stock, with 10 of the 17 in coverage sporting a "hold" rating, leaving plenty of room for additional upgrades in the future. Meanwhile, the 12-month consensus price-target of $197.29 is an 11.2% discount to current levels. 

On the charts, the DASH has added 35% over the last three months, during which it was guided higher by the 40-day moving average -- a trendline the equity hasn't closed below since early June. DASH is now trading at its highest level since February, and eyeing its highest close on record. Longer term, DoorDash stock boasts a 56% year-to-date lead.

Options traders are chiming in as a result of the positive price action. So far, 20,000 calls and 7,692 puts have exchanged hands, which is six times the intraday average. The most popular contract is the September 225 call, followed by the 220 call in the same series, with positions being opened at both. 

 

 

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