KeyBanc Upgrades DoorDash and Raises Uber Price Target Amid Strong Growth Projections

KeyBanc Capital Markets recently upgraded DoorDash to an “overweight” rating and raised its price target for Uber, expressing renewed confidence in both companies within the mobility and delivery sectors.

For DoorDash, the upgrade from “sector weight” to “overweight” comes with a new price target of $177, based on a 20x multiple of projected 2026 EBITDA. This positive shift is attributed to DoorDash’s ongoing growth in food delivery and its expansion into other areas like grocery services. Recent surveys indicate that DoorDash is the preferred food delivery service for 39% of respondents, significantly surpassing Uber, which holds 16%.

DoorDash is also making notable progress in the grocery delivery arena, with an 8% usage rate among respondents, reflecting a substantial 300-basis-point increase since late 2023. The company’s outlook is further strengthened by forecasts of a 17% year-over-year increase in gross order volume (GOV) for 2025, followed by a 15% growth in 2026.

EBITDA growth projections are similarly optimistic, with expectations of $2.6 billion in 2025 and $3.5 billion in 2026—about 6% above consensus estimates. This consistent growth in GOV and EBITDA highlights DoorDash’s operational efficiency and the scalability of its business model. The company’s foray into advertising and other revenue streams bolsters its position as a key player in the delivery market.

KeyBanc also raised Uber’s price target from $80 to $90, anticipating continued profit growth. Although there were no significant changes to Uber’s gross bookings or revenue projections, the increased target reflects expectations for improved operating efficiencies.

Uber is focusing on cost control, which is expected to drive faster EBITDA growth, prompting KeyBanc to adjust its EBITDA estimates for 2024–2026 upward by 1% to 2%. By 2026, Uber’s EBITDA is projected to reach $11.3 billion, showcasing robust operational performance, particularly in its mobility sector. The company’s disciplined management of operating expenses, along with potential benefits from foreign exchange movements, enhances its financial outlook.