Street View: Analysts favor DoorDash-Instacart deal, regulatory risk in focus
** DoorDash DASH.O said Thursday it would buy Instacart CART.O in deal valued at ~$17 billion, stepping up grocery-delivery push
** Also beat quarterly revenue est; stock jumped ~6%
DEAL STRATEGIC AND FINANCIALLY ACCRETIVE
** Oppenheimer says addition of CART, alongside Lyft partnership, would enhance DashPass value, increase ad revenue growth opportunities
** StoneX Equity Research says retaining two subscriptions at one price preserves CART's large weekly baskets while DASH serves meals and more frequent conveniences; maintains distinct shopping habits, customer relationships while integrating backend
** Needham sees strategic, financial sense; predicts regulatory hurdle, hinging on how Justice Department defines market
** Wedbush also sees regulatory scrutiny but predicts approval, as the appropriate competitive dynamic to focus on is the entirety of grocery