Bullish Experts Face Off Against Legal Challenges Amid DoorDash’s Growth

DoorDash (DASH) shares have regained strength as a series of analyst upgrades and increased price targets point to renewed optimism in the delivery leader. On October 27, 2025, Barclays resumed coverage with an Equal-Weight rating and set a $272 price target in a

, joining Goldman Sachs, which issued a more bullish $315 target and a "Buy" rating in . These updates come after several recent upgrades, such as Truist Securities boosting its target to $340 and Morgan Stanley to $330, indicating a growing consensus that DoorDash’s industry dominance and strategic moves are positioning it for sustained expansion.

The stock has hovered around $254.59, with analysts forecasting an average price target of $303.27—suggesting a 19.12% potential upside, according to the Barclays note. This positive outlook is driven by DoorDash’s global expansion through its 2022 acquisition of Wolt and its entry into drone delivery, as highlighted in the Barclays reinstatement. Goldman Sachs analysts emphasized the company’s favorable 3:1 risk/reward profile and strong financials, including a 50.04% gross margin and $11.895 billion in annual revenue, as detailed in

.

Yet, the optimistic outlook faces some challenges. Short-seller Culper Research recently accused

of using a "backdoor" process to bring on unauthorized workers with Individual Taxpayer Identification Numbers (ITINs), potentially exposing the company to regulatory issues, according to . The firm also claimed that a 10-11% increase in Dasher pay would wipe out all of DoorDash’s adjusted EBITDA for 2024, highlighting the vulnerability of its current profit structure in that report. DoorDash has labeled these allegations as "fraudulent," but is also facing a separate lawsuit from Virginia-based cannabis company Dalitso LLC, which alleges the platform enabled the delivery of illegal THC products, as reported in .

Despite these obstacles, DoorDash has shown resilience in the market. Shares climbed 4.8% after the short-seller report, and the company has increased its focus on corporate social responsibility to improve its public image. In November, DoorDash eliminated delivery fees for 300,000 SNAP recipients and pledged to provide one million free meals through its Project

initiative, as noted in . The company also broadened its collaborations with Kroger and Uber Eats, bringing restaurant delivery to grocery apps and ramping up competition with Instacart, according to .

The overall market backdrop remains uncertain. The Federal Reserve’s reluctance to lower interest rates has kept volatility elevated, as shown in the

, and DoorDash’s upcoming earnings release on October 30 may offer more insight. Analysts will be looking for evidence that the company’s strategic investments, such as its integration with Deliveroo, are leading to lasting growth, as Goldman Sachs has pointed out.

With shares trading near $264.30, investors are weighing the risks of regulatory challenges against the opportunities presented by DoorDash’s expanding reach. With 39 analysts setting an average target of $303.27, the possibility of reaching the high-end estimate of $360 remains, though not without significant challenges, as referenced in the earlier Barclays reinstatement.