Wolfe Research initiates coverage on Chime Financial stock with Outperform rating

Investing.com - Wolfe Research initiated coverage on Chime Financial (NASDAQ:CHYM) on Monday with an Outperform rating and a $38.00 year-end 2025 price target. According to InvestingPro data, this target represents potential upside from the current price of $31.32, with analysts’ targets ranging from $33 to $37.

The research firm highlighted Chime’s Payments and Platform products, noting the company’s differentiated approach in acquiring primary accounts and its cost-to-serve advantage, which it estimates at 3-5 times below traditional banks.

Wolfe Research identified key growth drivers for Chime, including its average revenue per active member (ARPAM) of $251 and its current active member base of 8.6 million users.

The firm also pointed to Chime’s large, underpenetrated total addressable market, with current penetration at approximately 2%, suggesting significant room for expansion.

Wolfe Research characterized Chime as a "best-in-class neobank" and potential market share gainer against traditional banks, indicating the company has potential for upside to estimates both near-term and over time.

In other recent news, Chime Financial has garnered attention from several major financial firms with varied assessments. William Blair initiated coverage with an Outperform rating, highlighting Chime’s strategic position as a cost-effective digital banking alternative. Goldman Sachs, however, took a more cautious approach, assigning a Neutral rating while acknowledging Chime’s strong revenue model but noting concerns about current profitability. Morgan Stanley (NYSE:MS) and Piper Sandler both initiated coverage with Overweight ratings, expressing confidence in Chime’s growth potential and innovative product offerings, such as MyPay, which is expected to drive future profitability.

JPMorgan also rated Chime with an Overweight rating, emphasizing its success in scaling financial services and its significant member growth. The firm projects a 20% compounded revenue growth and substantial EBITDA margin expansion through 2027. These developments indicate a range of perspectives on Chime’s market position and growth trajectory. Despite differing views, the consensus among analysts points to Chime’s potential for future expansion and profitability.

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