This food delivery stock could nearly triple from here

DoorDash Inc (NYSE: DASH) down 60% for the year is ripe for very steep returns moving forward, says Andrew Boone. He’s a Managing Director at JMP Securities.

DoorDash could be a $150 stock

Boone recommends that you buy DoorDash shares as they have upside to $150. His price objective translates to a massive 160% gain and a full recovery to the price at which the stock started 2022.

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He dubs the pure-play food delivery company a better pick than rival Uber Technologies Inc. Explaining why on CNBC’s “Power Lunch”, Boone said:

I tend to lean more on DoorDash as it’s more innovative of the two. DoorDash Drive and some of their capital programmes are very unique and create additional optionality in terms of revenue drivers for the business.

DoorDash is a “domestic leader” in online food delivery with a 56% share in the United States.

Why else is he bullish on DoorDash?

Other reasons why he is so incredibly bullish on the California-based company include a clear path to profitability.

Last month, DoorDash said total orders in its fiscal second quarter were up 23% on a year-over-year basis. Boone added:

One of the things we think is a permanent trend coming out of COVID is that the consumer has been habituated to food delivery. So, DoorDash is well positioned for post-COVID world and we think there’s tremendous amount of upside here.

DoorDash forecasts $200 million to $500 million in adjusted EBITDA this year. In August, it also partnered with Meta Platforms to test delivery of items listed on the Facebook Marketplace.