Chime Financial, Inc. Class A (CHYM) has received a new Buy rating, initiated by Piper Sandler analyst, Patrick Moley.
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Patrick Moley has given his Buy rating due to a combination of factors that highlight Chime Financial, Inc.’s strategic positioning and growth potential. Chime is effectively targeting a large market of nearly 200 million Americans earning less than $100,000 annually, a segment often overlooked by traditional banks. By offering innovative, fee-based financial services, Chime is democratizing access to credit and liquidity, which is expected to drive significant customer growth.
Chime’s business model is asset-light and heavily reliant on fees, with a substantial portion of its revenue derived from interchange fees on debit and secured credit card transactions. The company’s MyPay offering, which provides instant payday loans, has shown promising growth and is projected to further boost revenues. Additionally, Chime’s valuation, based on a 7x 2026 estimated EV/Sales, reflects a premium over its peers due to its higher growth expectations and resilience to interest rate fluctuations.
According to TipRanks, Moley is a top 100 analyst with an average return of 44.8% and a 90.98% success rate. Moley covers the Financial sector, focusing on stocks such as BGC Group, Cboe Global Markets, and Riot Platforms.
In another report released today, J.P. Morgan also initiated coverage with a Buy rating on the stock with a $40.00 price target.