DoorDash Stock Gains. Food Delivery Stocks Have Spotlight this Week.

As Instacart heads towards an initial public offering this week, rival DoorDash’s stock made gains early Monday morning. An analyst expressed optimism about spending on food orders.

Mizuho Securities’s James Lee upgraded DoorDash to Buy from Neutral on Sunday and raised the price target to $105 from $90. DoorDash stock (ticker: DASH) was up 1.4% to $82.05 in premarket trading Monday.

Lee said he sees DoorDash’s guidance for roughly 21% growth in the gross value of orders in fiscal 2023 as “conservative.” That’s partly because consumer spending has remained resilient while prices for food away from home have moderated nearly 200 basis points this year, he wrote.