What Does Barrington Analyst Like About Dave's (DAVE) Latest Earnings Report?

Dave Inc. (NASDAQ:DAVE) is one of the best high-beta stocks to buy now. On August 18, Barrington analyst Gary Prestopino maintained a Buy rating on Dave with an unchanged price target of $290. The reaffirmation followed Q2 FY25 results that exceeded both his and consensus expectations.

Driven by robust operating leverage, Dave Inc. (NASDAQ:DAVE) reported strong revenue growth to $131.7 million and an adjusted EBITDA of $50.9 million. The company reported a rise in monthly transacting members and average revenue per user, which, along with a revised fee structure, led to this growth. On a more positive note, service-based revenue experienced a solid 70% year-over-year growth, while transaction-based revenue increased by 20%.

The analyst also highlighted Dave Inc.’s (NASDAQ:DAVE) discipline on the cost side, as the company managed operating expenses effectively while driving strong growth in ExtraCash originations and Dave Card spend. This combination of top-line expansion, margin improvement, and operating efficiency underpinned Prestopino’s constructive outlook for the company’s earnings trajectory.

Dave Inc. (NASDAQ:DAVE) is a digital banking platform focused on improving financial access for underserved consumers. The company offers services including cash advances, spending accounts, and budgeting tools.

While we acknowledge the potential of DAVE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.