Despite a recent sell-off in high-growth technology names, Evercore ISI is bullish on online food delivery company DoorDash and sees a big rally from here. "While most of our speculative Tech names have traded off due to interest rate scares, we are buyers of DASH given its strong growth fundamentals and reasonably impressive profitability among Online Food Delivery players," Evercore's Mark Mahaney said in a note Tuesday. Evercore raised its rating on DoorDash to outperform from in line. The firm also hiked its target price on the stock $256, which is 78.2% above DoorDash's closing price Tuesday. The sell-off in tech names comes as interest rates shot higher to start the year. Subsiding investor concerns about Covid and its risk to economic growth have helped push rates up. The Fed is also dialing back its pandemic-era easy monetary policy and is set to hike interest rates this year to tamp down inflation, putting more upward pressure on yields. High-growth shares trade on the promise of big earnings growth in the future. Rising rates make their future potential cash flows less valuable and can hurt the valuation of tech stocks. DoorDash shares are down 3.5% this year after returning 4.3% in 2021 versus the S & P 500's nearly 27% gain. However, Evercore noted DoorDash's ability to make money as a differentiator from other digital food delivery names. "DASH is the only industry player expected to be profitable in 2022 ... which we think will afford DASH more resiliency given potential interest rate hikes," Mahaney said. Evercore also highlighted DoorDash's expansion in non-food verticals, white-label fulfillment delivery service DoorDash Drive, and global markets. —CNBC's Michael Bloom contributed reporting.
A DoorDash sign is pictured on a restaurant on the day they hold their IPO in New York, December 9, 2020.
Carlo Allegri | Reuters
Despite a recent sell-off in high-growth technology n