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The investment banking firm views CART as “the leader in grocery delivery in the US by a wide margin” as it continues to gain market share.
“We find the stock attractive trading at a 40% discount to the average of gig-economy peers on 2025 EBITDA. We look forward to continued growth acceleration in 1Q and the quarters ahead as a catalyst to narrow the valuation gap with comparable companies,” analysts said.
For DASH, Loop Capital believes that the ongoing debate regarding the viability and earnings potential of on-demand gig platforms has now been resolved.
They point out that industry leaders such as DoorDash have sustained their momentum even after the pandemic, adding that the significant increase in free cash flow generation “is undeniable.”
“DoorDash has established itself as the category killer in the US restaurant delivery space and is ramping across other regions and categories of local commerce,” analysts said.
“While DoorDash carries a valuation premium vs. many peers, it is justified by a higher growth rate, best-in-class execution and earnings power that we think is meaningfully understated by investment in new categories, new regions and new products,” they added.
