Street View: Analysts favor DoorDash-Instacart deal, regulatory risk in focus

By Reuters News

** 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

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