Loop Capital starts DoorDash at Buy, sees premium justified by higher growth

As previously reported, Loop Capital initiated coverage of DoorDash with a Buy rating and $170 price target. The stock is trading at a valuation premium vs. many of its peers, but that is justified by a higher growth rate, best-in-class execution and earnings power that is meaningfully understated by investment in new categories, new regions and new products, the analyst tells investors in a research note. Loop adds that years of debate over viability and earnings potential of on-demand gig platforms has been settled, with industry leaders like DoorDash having demonstrated continued momentum post-pandemic.