B. Riley starts Chime with Buy on ‘”long runway’ of growth

B. Riley last night initiated coverage of Chime (CHYM) with a Buy rating and $35 price target representing 40% potential upside from current levels. The firm says Chime is a profitable, high-growth neobank offering mobile banking services to customers often ignored by traditional banks. The firm says the company “enjoys high growth potential, with well-managed customer acquisition costs and already outstanding gross and transaction margins.” Riley sees a “long runway” of growth and meaningful potential upside to Street estimates from new member growth and margin expansion.