Dave credit concerns related to Upstart misplaced, says Benchmark

Benchmark says Dave (DAVE) have been under pressure in recent weeks amid investor concerns the company could face credit issues. The concerns stem in part to the release of a sell-side research report suggesting Upstart’s (UPST) credit performance was driven by macro issues that could also impact other credit-focused fintech companies, the analyst tells investors in a research note. Benchmark views the concerns around Dave as misplaced, saying applying the same brush to the company is misguided, “as it misses the defining characteristics of the company’s operating model.” Dave’s platform is designed around short-tenor cash advances offered to borrowers deemed highly likely to repay them based on real-time evaluations of their bank account data, the firm points out. It keeps a Buy rating on Dave with a $320 price target.