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Student loan repayments are set to resume in October, and that means there will be fewer dollars in borrowers’ budgets to order through DoorDash , according to MoffettNathanson. To that effect, the firm cut its rating on the food delivery stock to market perform and reduced its price target to $93 from $110. “Does the resumption of loan repayments introduce bookings risk to food delivery?” said analyst Michael Morton in a Friday note. “We fear the answer is yes.” After three years, the Department of Education’s Covid-19 relief pause for federal student loan borrowers is winding down. Student loan interest resumed accrual Sept. 1 and payments will be due in October. That means borrowers could be on the hook for $225 per month in average student loan repayments, according to estimates from MoffettNathanson. DoorDash has a greater proportion of monthly active users in the 25- to 44-year-old cohort compared to any other company in the firm’s coverage, the analyst said. “Unfortunately, these age cohorts carry 69% of the U.S. student loans,” Morton said, citing federal disclosures. DoorDash is up 64% this year, but the shares’ performance isn’t reflecting the risk facing the delivery company, the analyst added. “What concerns us are expectations for bookings growth of 15% in FY24 on an incremental ~300M orders,” he said. “This does not appear reflective of a ~16% hit to the discretionary income of 43 million consumers.” — CNBC’s Michael Bloom contributed reporting.
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