Goldman Sachs analyst Will Nance upgraded Chime (CHYM) to Buy from Neutral with a price target of $27, up from $26, which offers 28% upside. The stock has underperformed on concerns over slower than expected volume growth and the company’s lack of profitability, the analyst tells investors in a research note. The firm believes the market is underappreciating the take rate tailwinds from Chime’s new Chime Card. Goldman’s work suggests take rates are likely to come in meaningfully ahead of consensus expectations. It says Chime’s strategy to diversify revenues will likely result in continued upside to consensus expectations on platform revenue.
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