Investing.com – UBS initiated coverage on Dave Inc () with a Buy rating and a price target of $300.00, according to a research note released by the firm.
The investment bank projects mid-teens member growth and mid-20s percentage revenue and gross profit growth are achievable for the company in the medium term. UBS’s 2027 revenue and earnings per share forecasts are approximately mid-single digits above consensus estimates.
The firm’s analysis assumes lower marketing efficiency than Dave’s current peer-leading approximately three-month payback period and sub-$20 customer acquisition cost. The company currently trades at a P/E ratio of 16.4 based on trailing twelve-month earnings of $15.60 per share, with InvestingPro analysis suggesting the stock is trading near its Fair Value. For investors seeking deeper insights, a comprehensive Pro Research Report is available for DAVE, one of 1,400+ US equities covered with expert analysis and actionable intelligence.
UBS cited Dave’s CashAI-driven underwriting capabilities for external accounts as a source of confidence in its outlook. The firm also identified Dave Flex as a potential upside driver that could add up to approximately 10% and 20% to 2027 and 2028 EBITDA estimates as it scales following beta testing.
The firm noted that Dave Flex is not included in its base case forecast and that its investment thesis does not depend on the product’s success. UBS projects earnings per share growth of more than 25% for 2028.
In other recent news, Dave Inc. reported impressive financial results for the first quarter of fiscal 2026. The company achieved a revenue of $158.4 million, surpassing analyst projections of $151.83 million, marking a 47% increase from the previous year. Additionally, earnings per share were reported at $3.64, exceeding the anticipated $2.67. Service-based revenue also saw a significant rise, reaching $148 million, which is a 51% increase year-over-year.
Citizens has responded to these strong results by raising its price target for Dave Inc. shares to $365 from the previous $335, while maintaining a Market Outperform rating. These developments indicate a positive outlook from analysts regarding the company’s performance. The revenue figures and service-based growth highlight the company’s robust financial health in the recent quarter.
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