Goldman Sachs reinstated coverage with a "buy" rating and $315 price target
DoorDash Inc (NASDAQ:DASH) stock was last seen up 3.6% at $267.56 today, after Goldman Sachs reinstated coverage with a "buy" rating and $315 price target. The analyst in coverage cited momentum from the company's recently-completed acquisition of Deliveroo, its U.K-based peer.
On track for its third-straight gain, DASH is rebounding off its 100-day moving average and inching back toward its Oct. 16 record high of $285.50. Since the start of the year, the equity is up 59.9%.
Puts have been more popular than usual in the options pits over the last two weeks, and an unwinding of this pessimism could provide tailwinds. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), DASH's 10-day put/call volume ratio of 1.60 ranks higher than 91% of annual readings.
The company is also gearing up for its latest earnings report, due out after the close on November 5. DoorDash stock finished five of its last eight post-earnings sessions higher, including a 5% pop this past August. This time around, options pits are pricing in a next-day swing of 7.5%.
A premium-selling strategy could be the move going forward, as DASH's Schaeffer's Volatility Scorecard (SVS) checks in at 18 out of 100. This means the security has consistently realized lower volatility than its options have priced in.