JMP Securities eyes Dave Inc stock citing growth in fintech services By Investing.com

On Monday, Dave Inc (NASDAQ:DAVE) stock, was initiated with a Market Outperform rating by JMP Securities. The firm also set a price target for Dave Inc at $70.00, indicating a potential 65% increase from the company’s current stock price.

Dave Inc, established in 2016, offers cash advances to help customers avoid overdraft fees and provides a range of digital banking services. The company’s financial products are aimed at offering solutions for underserved Americans and minimizing excessive fees that customers often face.

The price target of $70.00 is based on an approximately 18x EV/EBITDA multiple on the firm’s projected 2025 adjusted EBITDA. This valuation reflects a significant upside to the current trading levels of Dave Inc’s shares.

JMP Securities’ positive outlook on Dave Inc is rooted in the company’s mission to create a more equitable financial ecosystem. By equipping customers with tools to manage their finances more effectively, Dave Inc seeks to address the needs of the estimated 160 million Americans living paycheck to paycheck.

The firm’s endorsement underscores the potential growth of Dave Inc as it continues to expand its offerings and reach in the financial technology sector. The neobank’s focus on innovation and customer-centric products positions it as a noteworthy player in the industry, catering to a substantial market of consumers seeking financial stability.

InvestingPro Insights

Following the recent coverage by JMP Securities, Dave Inc (NASDAQ:DAVE) has shown a notable performance in the market. InvestingPro data reveals that the company has experienced a significant return over the last week, with a 20.71% increase in stock price. This uptick is part of a broader trend, with the company achieving a 680.71% return over the last year, indicating strong investor confidence.

InvestingPro Tips suggest that while Dave Inc trades with high price volatility, the company’s liquid assets exceed its short-term obligations, and it operates with a moderate level of debt. These factors may contribute to its resilience and potential for growth. However, it’s important to note that analysts do not anticipate the company will be profitable this year, and it has not been profitable over the last twelve months as of Q1 2023.

For investors looking to delve deeper into Dave Inc’s financials and future prospects, there are additional insights available on InvestingPro. With a Market Cap of $541.4M and a high Price / Book multiple of 6.22, the company’s financial standing presents a mixed picture. Those interested can access more comprehensive analysis and metrics, including 14 more InvestingPro Tips, by visiting https://www.investing.com/pro/DAVE. To get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, use the coupon code PRONEWS24.

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