Benzinga | Sep 16, 2021 08:27AM EDT

BofA Sees 22% Upside In DoorDash - Read Why

* BofA analyst Michael McGovern upgraded DoorDash Inc (NYSE:DASH) to Buy from Neutral with a $255 price target, implying a 21.5% upside.

* McGovern expects non-restaurant ordering to help mitigate much of the post-pandemic drop in restaurant ordering.

* He sees online penetration of grocery, convenience, and alcohol spending increasing to 16% in 2026 from 8% in 2021.

* In addition, the firm's aggregated credit and debit card data suggest that core restaurant spending is holding up better than expected.

* Related Content: Key Takeaways From DoorDash's Second Lawsuit On NYC

* Price Action: DASH shares traded higher by 2.36% at $214.80 in the premarket session on the last check Thursday.