Analyst Mark Palmer from Benchmark Co. reiterated a Buy rating on Dave (DAVE – Research Report) and keeping the price target at $145.00.
Mark Palmer has given his Buy rating due to a combination of factors that highlight Dave, Inc.’s potential for growth and resilience in challenging economic conditions. The company’s neobank platform, with its ExtraCash cash advance product, is strategically positioned to cater to the approximately 65% of U.S. consumers living paycheck to paycheck. This product offers short-term liquidity without the high fees associated with traditional banks, making it attractive during economic downturns.
Additionally, Dave’s focus on the U.S. market and its countercyclical business model make it a compelling choice for investors. The company’s AI-driven credit-decisioning engine, CashAI, enhances profitability by managing credit losses effectively and supporting increased approval limits for advances. The recent shift to a mandatory fee structure and partnership with Coastal Community Bank further bolster its growth prospects. With a valuation target of $145 based on future EBITDA projections, Dave’s current trading multiple appears undervalued, reinforcing the Buy recommendation.
In another report released yesterday, JMP Securities also maintained a Buy rating on the stock with a $125.00 price target.