10:50 AM EDT, 06/30/2025 (MT Newswires) -- DoorDash ( DASH ) can continue a market share expansion by leveraging its focus on suburban markets to "gain traction in Tier-1 markets," Oppenheimer said in a Monday note.

The analysts also said they view the company's move into grocery delivery as a positive development, but added they will need to "see further evidence of positive execution."

Oppenheimer analysts said they see "multiple paths" for the company to reach earnings before interest, taxes, depreciation and amortization of $4.5 billion in 2027. DoorDash ( DASH ) can "flow through high-margin ad revenue and reinvest or drive lower-margin grocery delivery" with the help of advertising, the analysts said.

Oppenheimer said the company's $1 billion advertising disclosure "suggests further profitability ramp."

For Q2, the analysts cited Apptopia data that suggests order growth has increased 50 basis points on a linked-quarter basis to 18.6%, compared with Oppenheimer's 16% and the Street's 18% expectations.

Oppenheimer raised its price target to $280 from $220 while reiterating an outperform rating on the stock.

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