Deutsche Bank Upgrades Chime Financial (CHYM) to Buy, 'Gaining Confidence in the Growth Algorithm'

Deutsche Bank analyst Nate Svensson upgraded Chime Financial (NASDAQ: CHYM) from Hold to Buy with a price target of $35.00 (from $30.00).

The analyst comments "Following excellent 2Q26 results (link) we are upgrading CHYM to Buy from Hold. Our thesis is centered on sustained momentum in MyPay and Chime Prime, which we view as a multi-year growth drivers that can accelerate active acquisition, expand CHYM's addressable market, attract a higher-income customer demographic, and support a structurally higher growth profile for longer. Since becoming a public company, mgmt. has consistently executed against product, growth, and profitability objectives, materially improving the company's fundamental profile and increasing our confidence in the company’s ability to monetize a broader set of financial services over time. We believe CHYM has several levers to drive upside over the next several years. First, we see Chime Prime supporting faster active growth, greater engagement, higher payments volumes, and an improving customer mix, creating a foundation for sustained market share gains and stronger monetization. Second, we believe current expectations for MyPay remain conservative given strong adoption trends, the expansion of limits, and continued benefits from variable pricing, all of which should support continued platform revenue growth and transaction margin expansion. Finally, we see increasing optionality from newer financial services offerings, further boosted by the recently announced acquisition of Stride (see our recap note here for more details), including investing, unsecured credit, and other emerging products, which should further diversify the revenue base and increase ARPAM over time. Taken together, the combination of accelerating growth drivers, improving execution, and expanding financial services monetization increasingly supports CHYM's emergence as a category-leading neo-bank and one of the highest-conviction growth stories in our coverage universe. We have updated our model to reflect our more positive outlook and are raising our FY27/FY28 adj. EBITDA by ~$71m/~$117m to ~$778m/~$1,094m. We are also raising our TP to $35 (~17x CY27 EV/EBITDA) from $30 due to our stronger fundamental outlook for the company. Upgrade to Buy."

For an analyst ratings summary and ratings history on Chime Financial click here. For more ratings news on Chime Financial click here.

Shares of Chime Financial closed at $27.93 yesterday.

You May Also Be Interested In

• Abbott Labs (ABT) PT Lowered to $125 at BTIG
• Integer Holdings stockholders approve KKR acquisition merger agreement
• Southern Missouri Bancorp (SMBC) Tops Q1 EPS by 7c