Citizens JMP Raises DoorDash Price Target, Highlights AI Advertising Growth

DoorDash Inc. (NASDAQ:DASH) ranks among the best consumer discretionary stocks to buy now. On June 12, Citizens JMP maintained its Market Outperform rating on DoorDash Inc. (NASDAQ:DASH), while increasing the price target to $235 from $225.

The increase comes follows DoorDash, Inc. (NYSE:DASH) acquiring Symbiosys, an AI-powered advertising platform, for $175 million and introduced new AI-powered advertising solutions for merchants and brands. Additionally, DoorDash disclosed that its advertising division generated $1 billion in revenue last year, indicating the company’s strategic emphasis on growing this revenue stream.

According to Citizens JMP, DoorDash’s global advertising income in 2024 was over $950 million, reflecting a 1.2% penetration rate, though this remains less than the 2% level attained by rival Uber’s Eats restaurant division.

One of the largest online food delivery companies in the United States, DoorDash, Inc. (NYSE:DASH) operates a delivery platform based in San Francisco, California. Historically, the company has categorized itself into five business segments: platform services, advertising, non-restaurant services, international restaurants, and US restaurants.

While we acknowledge the potential of DASH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.