Mark Palmer, an analyst from Benchmark Co., reiterated the Buy rating on Dave (DAVE – Research Report). The associated price target was raised to $202.00.
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Mark Palmer has given his Buy rating due to a combination of factors that highlight Dave Inc.’s strong financial performance and strategic improvements. The company reported an outstanding first quarter of 2025, significantly exceeding market expectations in key financial metrics such as revenue and adjusted EBITDA. Revenue grew by 16% more than the consensus estimate, while adjusted EBITDA increased by 81% compared to expectations, showcasing a robust financial position.
Additionally, Dave Inc. demonstrated improved credit metrics, with a notable reduction in its delinquency rate even as loan originations surged. The implementation of a simplified fee structure for its ExtraCash advances contributed to higher average loan sizes and increased revenue per loan, resulting in a 29% rise in average revenue per user. These factors, combined with the potential for further benefits in the upcoming quarters, underpin Palmer’s confidence in the company’s growth trajectory, leading to the Buy rating and an increased price target.
In another report released today, Citizens JMP also maintained a Buy rating on the stock with a $200.00 price target.