Dave Outperforms Visa And Chime, Analyst Says

JPMorgan analyst Connor Allen has initiated coverage of fintech company Dave Inc (NASDAQ:DAVE) with an Overweight rating and a price target of $480.

Allen finds Dave's growth and profitability profile 'impressive', particularly its ability to solve the timing gap between salaries being paid and bills due.

The analyst notes that Dave is the fastest-growing (over 25%) and most profitable (mid-40% margins) among its core peers, with a remarkably lean operating model that generates $2 million in revenue per employee, double what it was since 2023.

Dave's flagship liquidity product ExtraCash drives 85% of direct revenue, and the company has raised subscription pricing for new members, providing a 'multi-year tailwind', according to Allen.