Shares of online delivery firm DoorDash (NASDAQ:DASH) surged 4% in premarket trading, reaching $137.83, after investment firm BTIG upgraded the stock to a "buy" rating from "neutral."
BTIG cited under-appreciated long-term growth drivers as the basis for the upgrade, adding that DoorDash is on track to achieve GAAP profitability this year, while amassing nearly $8 billion in cash reserves by 2026—a "rare combo" during a time of industry maturation.
In August, DoorDash exceeded revenue expectations for the June quarter and projected a stronger-than-anticipated core profit for Q3.
Currently, 42 brokerages rate the stock as a "buy," with a median price target of $144, according to data from LSEG.
So far this year, DoorDash's share price has climbed 34%, outperforming the Nasdaq 100 index's 15% gain.