Chime Financial Gets Buy and Hold Ratings, Shares Rise 2.3% in Monday Trading

Chime Financial's stock rose 2.3% after analysts assigned a mix of Hold and Buy ratings. J.P. Morgan and Evercore issued Buy ratings, while others were more cautious, providing a neutral outlook. The stock's performance suggests a positive reception from Wall Street, with analysts optimistic about the fintech company's future prospects.

Chime Financial's stock price surged by 2.3% on Monday, following a mix of Hold and Buy ratings from various analysts. J.P. Morgan and Evercore ISI assigned Buy ratings to the fintech company, while others were more cautious, providing a neutral outlook. This positive reception from Wall Street reflects analysts' optimism about Chime Financial's future prospects.

Evercore ISI initiated coverage on Chime Financial (NASDAQ: CHYM) with an Outperform rating and a $38.00 price target [1]. The research firm highlighted Chime's mobile-first platform, which operates through FDIC-insured partner banks and has attracted 8.6 million active members while capturing less than 3% of its core segment. Evercore ISI noted that Chime earns approximately 70% of its revenue from merchant-funded unregulated debit interchange fees, enabling the company to offer no-fee spending and savings accounts, a secured credit builder card, and short-term liquidity tools. The price target is based on a 9X EV/Transaction Profit multiple applied to Evercore's 2026 Transaction Profit forecast of $1.7 billion.

Other investment firms have also initiated coverage with varying ratings. Barclays started coverage with an Overweight rating and a $40.00 price target, emphasizing Chime's effective monetization model targeting low- to middle-income consumers [2]. Wolfe Research initiated coverage with an Outperform rating and a $38.00 price target for year-end 2025, highlighting Chime's cost-to-serve advantage and potential for market expansion [3]. William Blair echoed a positive outlook, rating Chime as Outperform and noting the company's advantage in serving younger consumers with innovative financial products [4].

Goldman Sachs took a more cautious stance, initiating coverage with a Neutral rating and a $34.00 price target, citing Chime's potential for profitability but expressing concerns over current valuation levels [5]. Morgan Stanley joined the ranks with an Overweight rating and a $39.00 price target, praising Chime's customer growth and new product uptake [6]. These developments underscore Chime's position as a notable player in the digital banking sector, with analysts recognizing its growth potential and challenges.

References:
[1] https://www.investing.com/news/analyst-ratings/evercore-isi-initiates-chime-financial-stock-with-outperform-rating-93CH-4124570
[2] https://www.investing.com/news/analyst-ratings/barclays-initiates-coverage-on-chime-financial-with-overweight-rating-93CH-4124571
[3] https://www.investing.com/news/analyst-ratings/wolfe-research-initiates-coverage-on-chime-financial-with-outperform-rating-93CH-4124572
[4] https://www.investing.com/news/analyst-ratings/william-blair-initiates-coverage-on-chime-financial-with-outperform-rating-93CH-4124573
[5] https://www.investing.com/news/analyst-ratings/goldman-sachs-initiates-coverage-on-chime-financial-with-neutral-rating-93CH-4124574
[6] https://www.investing.com/news/analyst-ratings/morgan-stanley-initiates-coverage-on-chime-financial-with-overweight-rating-93CH-4124575