12:01 PM EST, 11/13/2025 (MT Newswires) -- DoorDash ( DASH ) shares have fallen about 16% since the firm reported its Q3 results on investor caution over high investment and margin outlook, Wedbush Securities said in a note Thursday.

"We believe the dislocation has created a favorable risk/reward," the report said, pointing to shares trading at around 17.7x of Wedbush's 2027 adjusted EBITDA estimate.

DoorDash ( DASH ) has a leading competitive position within the US food delivery market and continues to execute well, positioning the firm for long-term sustainable growth, the report said.

The company plans incremental investments through 2026 in areas including creating a cohesive global tech platform and building new verticals and products, the note said.

"While the elevated level of investment will weigh on margins

in the near-term, we believe these initiatives are justified," the report said.

"They will expand DoorDash's ( DASH ) addressable market and bolster the company's product offerings on a global scale."

Wedbush upgraded the stock to outperform from neutral while keeping its $260 price target.

Price: 199.64, Change: +3.13, Percent Change: +1.59