Dave stock price target raised to $320 from $229 at Benchmark

Investing.com - Benchmark raised its price target on Dave Inc (NASDAQ:DAVE) to $320.00 from $229.00 on Monday, while maintaining a Buy rating on the financial technology company. According to InvestingPro data, Dave’s stock has surged over 187% year-to-date and currently trades near its 52-week high of $256.

The significant price target increase represents a nearly 40% boost from the firm’s previous valuation of the fintech lending company.

Benchmark based its new target on a 22x EV/EBITDA multiple applied to its fiscal year 2026 estimated adjusted EBITDA of $218.5 million.

The research firm noted that despite a strong rally in Dave’s share price, the stock still trades at 16.6x FY26E EV/EBITDA, which trails the valuations of its closest peers in the fintech lending space.

According to Benchmark, Dave’s competitors in the fintech lending sector trade at an average multiple of 21.6x FY26E EV/EBITDA.

In other recent news, Dave Inc reported first-quarter 2025 earnings that significantly surpassed analyst expectations. The company achieved earnings per share (EPS) of $2.48, far exceeding the forecasted $0.75, and reported revenue of $108 million, which was higher than the anticipated $92.63 million. This strong performance led JMP Securities to raise its price target for Dave Inc from $125.00 to $200.00, maintaining a Market Outperform rating. Additionally, Dave Inc’s adjusted EBITDA more than tripled from the previous year to $44.2 million, reflecting improved operational efficiency and lower expenses.

The company also announced an upward revision of its full-year 2025 revenue guidance to a range of $460-$475 million, indicating a growth rate of 33-37%. Similarly, the adjusted EBITDA guidance was increased to $155-$165 million, showing anticipated growth of 79-91%. These adjustments highlight Dave Inc’s optimistic outlook and strategic focus on product innovation and market expansion.

In terms of operational performance, Dave Inc’s non-GAAP variable profit saw a 67% increase, reaching $83.4 million, and the variable margin improved by nearly 950 basis points. The company’s customer acquisition cost rose by 13% year-over-year to $18, but this was offset by enhanced customer lifetime value. The recent developments underscore Dave Inc’s robust growth trajectory and its ability to exceed market expectations.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.