Analyst Mark Palmer of Benchmark Co. reiterated a Buy rating on Dave, retaining the price target of $320.00.
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Mark Palmer has given his Buy rating due to a combination of factors surrounding Dave Inc.’s current market position and future prospects. Despite a recent decline in Dave’s share price following news that JPMorgan Chase plans to charge data aggregators like Plaid for access to customer bank data, Palmer believes the market’s reaction was excessive. He argues that even if Plaid passes these charges onto Dave, the impact on the company’s margins would likely be minimal.
Moreover, Dave’s recent shift in its monetization model for ExtraCash advances from optional tips to a mandatory fee structure has proven successful, increasing the company’s average revenue per user. This change has demonstrated that demand remains strong despite higher pricing. Palmer also notes that Dave’s current valuation presents an attractive entry point for investors, as it trades at a discount compared to its fintech lending peers. This, combined with a robust price target based on future EBITDA projections, supports his Buy rating.
According to TipRanks, Palmer is a 5-star analyst with an average return of 10.9% and a 51.87% success rate.
In another report released today, Citizens JMP also maintained a Buy rating on the stock with a $260.00 price target.