Wedbush lifts DoorDash and Booking, sees attractive entry points

Investing.com -- Wedbush upgraded DoorDash and Booking Holdings to Outperform from Neutral in separate notes on Thursday, saying both companies’ recent share price declines have created compelling risk/reward opportunities.

Analyst Scott Devitt said DoorDash “has retained a leading competitive position within the U.S. food delivery market and continues to execute well across strategic initiatives.”

Wedbush maintained its $260 price target on the stock, noting that shares have declined approximately 16% since the company’s third-quarter results.

The pullback, Devitt said, reflects investor caution over rising investment and margin pressure, but he believes those concerns are overdone.

Management’s plans to increase spending through 2026 in areas including “creating a cohesive global tech platform, building new verticals and products, and scaling geographic expansion” are expected to weigh on margins in the short term.

However, Wedbush said those initiatives “are justified, as they will expand DoorDash’s addressable market and bolster the company’s product offerings on a global scale.”

For Booking Holdings, Wedbush reiterated its $6,000 price target on the stock, citing continued strength in travel demand and share gains in alternative lodging.

“Booking is the leading global OTA and continues to gain share within alternative lodging while driving efficiencies through ongoing cost optimization efforts,” Devitt wrote.

The firm said the company’s strong liquidity, free cash flow conversion, and global diversification position it well for long-term growth.

Shares, which have fallen about 8% over the past three months, now trade near the low end of their two-year valuation range, Wedbush noted.

“Booking remains the best-positioned OTA in our view,” Devitt said, highlighting robust demand across all major regions, especially in Asia and other international markets.

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