Piper Sandler initiates Dave at 'overweight' on growth prospects

Piper Sandler initiates coverage on neobank fintech platform Dave DAVE.O with an "overweight" rating and sets a price target of $390, which is a 16.6% upside to the stock's last close.

The brokerage says DAVE's fee-based model and growing portfolio of products position the company to win share within an underserved customer cohort.

DAVE is a low-cost neobank alternative serving the ~185 million “financially vulnerable” Americans who remain underserved by traditional banks, the brokerage says.

It adds that its flagship product, ExtraCash, provides cash advances to customers and is underwritten through CashAI, the company's proprietary AI-powered underwriting engine.

11 of 13 analysts rate the stock "strong buy" or "buy" and two "hold"; their median price target is $449.5, according to data compiled by LSEG.

Including the session's move, the stock is up 50.4% year-to-date.