Dave Inc. (DAVE) Is a “highly profitable neobank” Platform, Says Keefe, Bruyette & Woods

Dave Inc. (NASDAQ:DAVE) is among the best money-making stocks to buy right now. On February 10, TheFly reported that Ryan Tomasello at Keefe, Bruyette & Woods initiated coverage of Dave Inc. (NASDAQ:DAVE) with an Outperform rating and a $250 price target. The firm’s 1-year price target implies a 41.02% upside.

With 13.5 million members, Dave Inc. (NASDAQ:DAVE) is a “highly profitable neobank” platform that serves financially underserved and lower-income consumers, the analyst noted. Perhaps more compelling is the company’s key cash advance offering, ExtraCash, which boasts the ability to support a revenue growth of 20% over the medium term, the analyst concluded.

Similarly, on February 9, William Blair initiated coverage on Dave Inc. (NASDAQ:DAVE) with an Outperform rating. The firm believes the company has redefined the traditional banking landscape as it delivers short-term and low-balance unsecured loans to a total addressable market (TAM) of 185 million accounts. According to the firm, a 10% cap on credit card interest rates could limit bank credit and increase demand for the company’s solutions.

Dave Inc. (NASDAQ:DAVE) is a California-based provider of a range of financial products and services via its platform. Founded in 2015, the company offers a personal financial management tool, a short-duration liquidity alternative, and a job application portal.

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Disclosure: None.