DAVE - Dave: This Should Go Higher In 2024

2024-06-20 12:01:37 ET

Summary

• Dave Inc. has resolved critical balance sheet problems and is now demonstrably profitable, reducing financial risk.
• Dave's products like CashAI and DaveGPT drive efficient member acquisition and retention, essential for sustainable growth.
• At 12x EBITDA, Dave presents a favorable risk-reward profile, with the potential for revaluation to 18x forward EBITDA, making it a compelling investment opportunity.

Investment Thesis

Dave Inc. ( DAVE ) is not a blemish-free neobank. The core issue with this investment thesis is that its outlook for the remainder of 2024 is fuzzy.

More specifically, it appears that Q1 may have already been as good as it is going to get for 2024. However, despite this consideration, I believe that Dave is a solid investment, and expect this stock to continue to move higher in 2024....

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