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Student loan payments will resume. That could dent this food delivery stock, MoffettNathanson says

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Food delivery is a luxury, and borrowers' budgets are about to be strained, according to the firm.

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.

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.

 

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