Bullish Analysts Clash with Legal Risks as DoorDash Expands

DoorDash (DASH) bulls have regained momentum as a wave of analyst upgrades and revised price targets signals growing confidence in the delivery giant. Barclays reinstated coverage of the stock with an Equal-Weight rating and a $272 price target on October 27, 2025, in a Barclays reinstatement, joining Goldman Sachs, which set a more optimistic $315 target with a "Buy" rating in a Goldman Sachs note. These moves follow a string of recent upgrades, including Truist Securities raising its target to $340 and Morgan Stanley to $330, reflecting a broader consensus that DoorDash's market leadership and strategic innovations are repositioning the company for long-term growth.

The stock has been trading near $254.59, with analysts projecting an average price target of $303.27—implying a 19.12% upside, according to that Barclays note. This optimism is fueled by DoorDash's expansion into international markets via its 2022 acquisition of Wolt and its foray into drone delivery technology, per the Barclays reinstatement. Goldman Sachs analysts highlighted the company's 3:1 risk/reward ratio and robust financial metrics, including a 50.04% gross margin and $11.895 billion in annual revenue in a Goldman Sachs analysis.

However, the bullish narrative faces headwinds. Short-seller Culper Research recently accused DoorDash of relying on a "backdoor" system to onboard unauthorized workers using Individual Taxpayer Identification Numbers (ITINs), which could expose the company to regulatory risks in a Benzinga article. The firm also alleged that a 10-11% raise in Dasher pay would erase all 2024 adjusted EBITDA, underscoring the fragility of its current profit model in that report. DoorDash has dismissed these claims as "fraudulent" but faces a separate lawsuit from Virginia-based cannabis company Dalitso LLC, which accuses the platform of facilitating the delivery of illicit THC products in a Maine Wire report.

Despite these challenges, DoorDash's market resilience is evident. The stock rose 4.8% following the short report, and the company has doubled down on corporate social responsibility initiatives to bolster public perception. In November, DoorDash waived delivery fees for 300,000 SNAP recipients and committed to delivering one million free meals through its Project DASH program, according to a PJStar article. The company also expanded partnerships with Kroger and Uber Eats, integrating restaurant delivery into grocery apps and intensifying competition with Instacart, as reported in a Seeking Alpha report.

The broader market environment remains mixed. While the Federal Reserve's hesitancy to cut interest rates has kept volatility high, according to the Investing.com economic calendar, DoorDash's recent earnings report—scheduled for October 30—could provide further clarity. Analysts will be watching for signs that the company's strategic investments, including its Deliveroo integration, are translating into sustainable growth, as Goldman Sachs noted.

As the stock trades near $264.30, investors appear to be weighing the risks of regulatory scrutiny against the potential rewards of DoorDash's expanding footprint. With 39 analysts averaging a $303.27 target price, the path to $360—a high estimate—remains open, though not without hurdles per the earlier Barclays reinstatement.