Bank Of America Securities analyst Michael McGovern reaffirmed a Buy rating on DoorDash, Inc. (NASDAQ:DASH) with a price forecast of $235 ahead of earnings release on 7th May.

The analyst writes that BSM data indicates DoorDash’s growth decelerated 90bps sequentially in the first quarter (vs. consensus estimate of deceleration of 160bps).

Also, the data reveals that April growth accelerated year over year by 110bps, despite the negative impact of Easter’s timing (Visible Alpha’s consensus of a 110bps deceleration for the second quarter), adds the analyst.

Also Read: Dominos Is ‘Fine’ With DoorDash, Eyes Full National Rollout For Q2: CEO Says Pizza Giant’s Strategy Is To ‘Meet Customers Where They Are’

The analyst estimates GOV/EBITDA at $23 billion/$582 million, slightly above the Street consensus of $22.9 billion/$586 million.

McGovern estimates a 5.6% incremental EBITDA margin on GOV, with higher contribution of high-growth New Verticals.

The analyst cited key topics for the call, including ROO’s proposal, Western Europe competition, tariff impact, and regulations.

McGovern expects the second quarter GOV to be $23 billion-$23.4 billion and the EBITDA to be $580 million-$630 million.

The analyst anticipates typical management caution due to Easter timing (-1ppt growth), potential dollar weakness, and a focus on stronger EBITDA margin improvement in the second half.

Price Action: DASH shares are up 0.44% at $206 at the last check Monday.

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