Andrew Jeffrey, an analyst from William Blair, has initiated a new Buy rating on Chime Financial, Inc. Class A (CHYM).
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Andrew Jeffrey has given his Buy rating due to a combination of factors that highlight Chime Financial, Inc.’s strategic position in the evolving digital banking landscape. He believes that Chime is well-positioned to capitalize on the shift from traditional banks to consumer-friendly digital providers, offering lower costs and higher engagement. This is particularly appealing to younger consumers who demand innovation and broader product offerings.
Chime’s focus on primary banking relationships and its cost-to-serve advantage are expected to drive strong income and operating leverage. The company is tapping into a large total addressable market, with significant potential to grow its user base from the current 8.6 million accounts. Jeffrey anticipates that as Chime scales, it will benefit from normalizing risk losses and fixed-cost leverage, supporting a strong long-term free cash flow return on invested capital. Despite trading at a premium, he believes Chime’s valuation is justified by its growth potential and ability to capture market share.
According to TipRanks, Jeffrey is a 5-star analyst with an average return of 14.5% and a 65.24% success rate. Jeffrey covers the Technology sector, focusing on stocks such as Fiserv, Corpay Inc, and WEX.
In another report released today, Piper Sandler also initiated coverage with a Buy rating on the stock with a $40.00 price target.