Dave pullback on FTC amended suit an ‘opportunity to add,’ says Benchmark

Benchmark notes that shares of Dave (DAVE) came under pressure during Tuesday’s trading session after the Federal Trade Commission announced it had referred the lawsuit it filed against the company on November 5 to the Department of Justice, which in turn amended and refiled the complaint. While the news of the FTC’s referral of its lawsuit to the DOJ caused a downdraft in share price, the firm sees “a few reasons” why investors should view the pullback as “an opportunity to add to or initiate positions,” the analyst says. “Heading this list” is the fact that the Biden Administration DOJ staff who filed the amended complaint against Dave is poised to be replaced in a matter of weeks by new Trump Administration appointees, who are likely to interpret the issues at hand in the case through “a much more business-friendly lens,” contends the analyst, who reiterates a Buy rating and $119 price target on Dave shares.