Benchmark maintains Buy on Dave stock with $145 target

On Tuesday, Benchmark analysts maintained a Buy rating on Dave Inc (NASDAQ:DAVE) shares, with a price target of $145.00. The firm’s analysts highlighted the company’s strong fourth-quarter performance, which exceeded Wall Street’s expectations for both revenue and earnings. According to InvestingPro data, Dave’s revenue grew by 34% in the last twelve months, with a healthy gross profit margin of 60%. This success was attributed to a significant increase in ExtraCash advance originations and Dave Debit Card spending.

Dave Inc. reported its fourth-quarter results on Monday, showcasing financial achievements that surpassed analyst predictions. The company’s management also provided an optimistic outlook for the fiscal year 2025, projecting higher revenue and adjusted EBITDA than previously anticipated. InvestingPro analysis indicates the company is currently trading above its Fair Value, with two key ProTips highlighting its strong return over the last year and expected net income growth (unlock 6 more ProTips with InvestingPro).

Following the announcement of the positive quarterly report and encouraging future guidance, Dave Inc.’s stock experienced a notable increase. During the extended trading session on Monday, the company’s share price jumped by over 5%.

The positive momentum for Dave Inc. comes amid a broader context where financial technology firms are navigating a dynamic market environment. The company’s performance and the subsequent stock response underscore the market’s reception to Dave Inc.’s growth strategies and financial health.

Benchmark’s reiterated Buy rating and price target of $145.00 reflect confidence in Dave Inc.’s potential for continued growth and profitability. The endorsement by Benchmark analysts suggests that the company’s recent achievements are in line with their expectations for its market performance.

In other recent news, Dave Inc reported impressive financial results for Q4 2024, significantly exceeding market expectations. The company posted an earnings per share (EPS) of $2.04, a notable turnaround from the anticipated loss of $1.13 per share. Revenue also surpassed forecasts, reaching $100.9 million compared to the expected $79.75 million, marking a 38% year-over-year increase. Despite the strong financial performance, Dave Inc’s stock saw a decline, which may reflect investor caution or market conditions.

The company has provided optimistic guidance for 2025, projecting revenue growth between 20% and 25%, with anticipated revenues ranging from $415 million to $435 million. Additionally, Dave Inc expects its adjusted EBITDA to be between $110 million and $120 million, indicating continued improvements in profitability. The company is also transitioning to a new fee structure aimed at enhancing future profitability and aligning better with its members.

Moreover, Dave Inc has finalized a strategic partnership with Coastal Community Bank, which is expected to bolster its product offerings and operational capabilities. Analysts from firms such as Canaccord Genuity and Lake Street Capital Markets have shown interest in the company’s pricing model changes and growth strategies. Dave Inc’s leadership remains confident in its legal position regarding an ongoing lawsuit and plans to address consumer disclosures and consent issues raised in the complaint.

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