Benchmark maintains $145 price target on Dave Inc stock

Published 24/03/2025, 14:40
Benchmark maintains $145 price target on Dave Inc stock

Monday, shares of Dave Inc (NASDAQ:DAVE) remained under scrutiny as Benchmark analyst Mark Palmer reiterated a Buy rating and a $145.00 price target, representing a potential 53% upside from current levels. Palmer’s endorsement comes despite the stock’s notable decline in recent weeks. According to InvestingPro data, Dave Inc has demonstrated strong momentum with a remarkable 125% return over the past year, though current analysis suggests the stock may be trading above its Fair Value. Dave Inc’s CEO Jason Wilk and CFO Kyle Beilman shared insights into the company’s business model and strategy during a fireside chat hosted by Benchmark last week, which was followed by a significant drop in the company’s share price.

Dave Inc’s stock price fell approximately 24% over the past five weeks, a period during which the broader fintech sector also experienced a downturn. For context, the Global X FinTech ETF, a measure of the fintech market’s performance, saw a decline of over 13% in the same timeframe. Despite this sector-wide decline, the focus has been on Dave Inc’s performance, which maintains strong fundamentals with a healthy current ratio of 8.05 and a solid gross profit margin of 60%. Discover more insights about Dave Inc and 1,400+ other stocks with InvestingPro’s comprehensive research reports.

The company’s fourth-quarter report for 2024 indicated strong operating momentum, with revenue growth of 34% and earnings per share of $4.62, which appears to be accelerating according to the Benchmark analyst. This positive outlook from the company’s report contrasts with the recent downward trend in its stock price. InvestingPro analysis reveals eight additional key insights about Dave’s financial health and growth prospects.

The fireside chat aimed to provide investors with a clearer understanding of Dave Inc’s strategic direction and operational strengths. The discussion highlighted the company’s resilience and growth prospects, even as the fintech sector faces headwinds.

Investors and market watchers are keeping a close eye on Dave Inc’s stock following the reaffirmed Buy rating and price target from Benchmark. The company’s future performance, particularly in light of its fourth-quarter momentum, remains a point of interest in the fintech industry.

In other recent news, Dave Inc. reported a strong performance in its fourth-quarter earnings for 2024, with revenue reaching $101 million, marking a 38% year-over-year growth. The company’s earnings per share (EPS) were $2.04, significantly exceeding the forecasted loss of $1.13, showcasing a substantial earnings beat. Analysts from JMP Securities maintained a Market Outperform rating for Dave Inc., with a price target of $135, citing the company’s consistent performance and strong financial results. Canaccord Genuity also raised its price target to $130, maintaining a Buy rating, highlighting Dave Inc.’s robust fourth-quarter results and positive outlook for the coming year.

Benchmark analysts reiterated a Buy rating with a $145 price target, pointing to the company’s strong financial achievements and optimistic guidance for 2025. Additionally, Dave Inc. announced a new $50 million stock buyback program, reflecting its confidence in financial stability and long-term growth potential. The company’s management emphasized that the buyback is a strategic move to potentially enhance shareholder value. These developments come as Dave Inc. continues to navigate a dynamic market environment, with a focus on expanding its user base and improving operational efficiency.

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