Michael M. Santiago
DoorDash (NYSE:DASH) fell in early trading on Friday after RBC Capital Markets cut its rating on the food delivery specialist to Sector Performance from Outperform.
Analyst Brad Erickson and team say they don’t play macro tag with downgrades but points to a combination of evidence of slowing core order growth, limited EBITDA downside support, and channel testing that suggests Uber is doing better in Manhattan as a representation of overall performance.
Transaction fees for DASH due to its strong management, strong execution and being a top player in the space are considered oversensitive to a more pronounced deceleration in performance over the coming year.
“DASH’s execution and management are considered by many to be industry-class, but as we approached ’23, we were uncomfortable with the potential adverse risk/reward due to the potential for over-sensitivity to reductions. order speed,” RBC notes.
Shares of DoorDash (DASH) Hut 3.06% in premarket trading on Friday to hit $55.37 against The 52-week trading range is from $41.37 to $171.08.
