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Investing.com - Evercore ISI initiated coverage on Chime Financial (NASDAQ:CHYM) with an Outperform rating and a $38.00 price target on Monday. According to InvestingPro data, this target suggests upside potential from the current price of $31.32, with analysts’ targets ranging from $33 to $40.
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 provide 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 (JO:NTUJ) Profit forecast of $1.7 billion for the financial technology company.
The firm characterized Chime’s business model as producing high 60s percent transaction margins, with "economics more akin to software than to branch banking."
In other recent news, Chime Financial has been the focus of several investment firms initiating coverage with varying ratings. Barclays (LON:BARC) started coverage with an Overweight rating, setting a price target of $40.00, and emphasized Chime’s effective monetization model targeting low- to middle-income consumers. Wolfe Research also 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. William Blair echoed a positive outlook, rating Chime as Outperform and noting the company’s advantage in serving younger consumers with innovative financial products.
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. Morgan Stanley (NYSE:MS) joined the ranks with an Overweight rating and a $39.00 price target, praising Chime’s customer growth and new product uptake. These developments underscore Chime’s position as a notable player in the digital banking sector, with analysts recognizing its growth potential and challenges.
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