Dave Inc stock rating reiterated at Buy by Benchmark with $320 target

Published 20/08/2025, 13:28
Dave Inc stock rating reiterated at Buy by Benchmark with $320 target

Investing.com - Benchmark has reiterated its Buy rating on Dave Inc (NASDAQ:DAVE) with a price target of $320.00, representing a 68% upside from the current price of $190. According to InvestingPro data, 5 analysts have recently revised their earnings expectations upward, with the company expected to be profitable this year.

The research firm maintained its positive outlook on the financial technology company following a Benchmark-hosted investor meeting with Dave CEO Jason Wilk and CFO Kyle Beilman held earlier this week.

Benchmark noted that the meeting provided clarity regarding Dave’s increase in 28-day delinquencies during the second quarter of 2025, which the firm suggested had overshadowed the company’s performance.

According to Benchmark, this delinquency uptick "obscured a remarkably strong operating performance across almost every metric" for the quarter.

The investor meeting also offered insights into Dave’s operating strategy and growth trajectory following the company’s Q2 2025 financial results, Benchmark reported.

In other recent news, Dave Inc. reported second-quarter 2025 earnings that surpassed analyst expectations, with revenue reaching $132 million, marking a 64% year-over-year increase and a 22% sequential rise. The company’s adjusted earnings per share were $3.14, significantly higher than the analyst estimate of $1.49. In light of this performance, Dave Inc. raised its full-year 2025 revenue guidance to $505-515 million, exceeding previous forecasts. Despite these strong financial results, concerns about rising delinquency rates and operating leverage have been noted. JMP Securities responded by raising its price target for Dave Inc. from $260 to $280, maintaining a Market Outperform rating. Additionally, Dave Inc. announced an increase in its share repurchase authorization to $125 million, up from the previous $50 million. The company has already utilized approximately $25 million for stock repurchases since its second-quarter earnings report. Year-to-date, Dave has invested over $45 million in share repurchases and RSU net settlements.

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