International investment banking company JPMorgan Chase & Co has upgraded DoorDash. And, not just the upgrade as you understand it to be. This banking company upgrading the food delivery app is like seeing your flight upgraded from Economy to Business class. Here’s the news scoop.
The upgrade
JPMorgan Chase & Co has upgraded DoorDash from Neutral to Overweight, thanks to the recent acquisitions that expanded the app’s addressable market.
JPMorgan is a USA-based multinational finance corporation with New York City as its headquarters. Incorporated in Delaware, it is, thus far, the biggest bank on the country, and one of the world’s largest banks by market capitalization.
This upgrade is seen as necessary for DoorDash to drive faster growth in the upcoming years.
The banking institution also lifted its price target to $325 for December 2026 from $175 for December 2025. Call it too advanced, but this is before a period of restriction, noting that the stock has surged, yes, surged to around 63 percent this year.
What does this mean?
Yes, what does the upgrade mean from the financial point-of-view? Experts are saying that this upgrade signals heightened confidence in the future growth trajectory of DoorDash. With this rating, from Neutral to Overweight in a good sense, the bank suggests to investors that it is capable of outperforming entities around it. Take a look at the changes in the price targets as well.
Furthermore, DoorDash’s recent acquisitions are also opening up new accesses to new markets – particularly in Western Europe and the Middle East – adding in millions of users and hundreds of thousands of merchants. JPMorgan, take note, also points to more substantial monetization potential through advertising, subscription services, and expansions of DoorDash into grocery and fulfillment services.
In essence, this major change and upgrade view DoorDash shifting from a high-risk, high-growth business to a more scalable and multi-legged business, whose footprint in the industry cannot be overstated. In other words, very noticeable.
More implications
This upgrade has its effects, however. It’s not like a one-way relationship. The investment banking company, therefore, expects DoorDash to reinvest its profits more aggressively in acquiring more customers and subscriptions to further sustain this growth.
In addition, the recent changes in the administrative roles are also bound to smoothening integrations and limit the problems that DoorDash is having. Of course, while taking into consideration the upgrade.
Likewise, in lieu of the upgrade, the app is also expanding into new verticals, such as adding grocery and fulfillment services. These non-restaurant delivery services are potential to catapult the app into new and fresher horizons.
As for the advertising and monetization sides, the figures are also favorable. For instance, monetization could reach a whopping $3 billion in revenue by 2027, JPMorgan Chase & Co estimated.
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