Dave, Inc.: Strong Growth Potential and Market Penetration Drive Buy Rating

In a report released today, Gary Prestopino from Barrington maintained a Buy rating on Dave (DAVE – Research Report), with a price target of $250.00.

Gary Prestopino has given his Buy rating due to a combination of factors that highlight Dave, Inc.’s strong potential for growth and market penetration. Dave’s strategic focus on acquiring new members efficiently and enhancing customer engagement through its ExtraCash product and Dave Card has positioned it well in the market. The company’s innovative use of technology allows it to offer competitive, low-cost banking services, particularly appealing to younger, lower-income consumers who are often burdened by high fees from traditional banks.
Moreover, significant investments in technology have led to operational efficiency and scalability, enabling Dave to convert incremental revenue to adjusted EBITDA at a high rate. The company’s business model is supported by a large and expanding market, with a total addressable market of 180 million Americans. Additionally, Dave’s new fee structure for ExtraCash has improved financial results, and its technology-driven CashAI platform provides a competitive edge in credit decisioning. These factors, along with the company’s consistent performance exceeding expectations, underpin Prestopino’s positive outlook and Buy rating for Dave’s stock.

Prestopino covers the Consumer Cyclical sector, focusing on stocks such as Liquidity Services, ACV Auctions, and Dorman Products. According to TipRanks, Prestopino has an average return of 13.4% and a 54.51% success rate on recommended stocks.

In another report released on May 27, B.Riley Financial also maintained a Buy rating on the stock with a $239.00 price target.