Chime price target lowered to $30 from $35 at Piper Sandler

Piper Sandler lowered the firm’s price target on Chime (CHYM) to $30 from $35 and keeps an Overweight rating on the shares. The firm notes Chime reported a strong Q3 beat with adjusted EBITDA of $29M coming in well above its $14.7M estimate and $12M-$17M guidance range. Two areas of investor concern coming out of Chime’s Q2 earnings call in August had been around the declining revenue growth implied by FY25 guidance and stagnant active member growth vs. Q1 and Chime’s ability to “widen the funnel” for new customers. Q3 results should help alleviate these concerns as active members grew by 5% quarter-over-quarter to a record 9.1M and the updated Q4 revenue guide implies +21.5% growth exiting the year at the midpoint, Piper adds.