Airbnb, DoorDash rally after new bull touts market dominance
Airbnb Inc. and DoorDash Inc. have an analyst advocating for both firms after strong trading debuts last week.
Shyam Patil at Susquehanna Financial Group initiated coverage on both companies with buy-equivalent ratings and 12-month share price targets that are the highest among Wall Street firms covering the stock, according to data compiled by Bloomberg.
The firm issued price targets of US$180 for Airbnb and US$185 for DoorDash, citing their market dominance in their respective industries. The bullish initiation comes one day after short-seller Citron Research slammed DoorDash’s IPO as the “most ridiculous” of the year, and called it grossly overvalued.
Airbnb gained as much as 8.1 per cent to US$159 on Friday, while DoorDash erased an initial decline to rise as much as 6.9 per cent.
Both stocks have been strong performers since they went public earlier this month. Airbnb started trading last week and has jumped about 130 per cent to reach a market capitalization of US$94 billion. DoorDash is up about 60 per cent after going public on Dec. 9, resulting in a market value above US$50 billion.
Reported by BNN Bloomberg