Rothschild Redburn initiated coverage of Chime Financial (NASDAQ:CHYM) with a Neutral rating and set a $29.00 price target. The firm noted the company currently trades at $26.46, which is modestly above InvestingPro’s Fair Value assessment, and highlighted that analyst price targets across the market range from $19 to $40.
The research team pointed to Chime’s partner-led distribution model as a key enabler of faster customer growth while sidestepping the costs and complexity of owning full bank infrastructure. However, Rothschild Redburn emphasized that Chime’s strategy is shifting toward lending-driven revenue, a move that introduces new constraints.
Rothschild Redburn explained that credit risk ultimately resides with Chime and that as partner banks approach capacity limits imposed by Durbin-related restrictions, an increasing portion of originated loans will likely migrate onto Chime’s own balance sheet. The firm cited InvestingPro data showing Chime’s liquid assets exceed short-term obligations and noted a current ratio of 4.94, but it also flagged that the company was unprofitable over the last twelve months.
On the outlook, Rothschild Redburn identified near-term upside to fiscal year 2026 estimates tied to higher MyPay pricing and anticipated tighter cost controls. Those potential gains, the research note said, are counterbalanced by a structural shift toward more cyclical, credit-exposed revenue streams that the firm expects will exert downward pressure on Chime’s valuation multiple over time.
Recent corporate and analyst developments
Chime reported third-quarter 2025 results showing revenue up 29% year-over-year, reaching a range between $572 million and $582 million. The company also improved its adjusted EBITDA margin by 9 percentage points to 5%, and management subsequently raised the company’s full-year outlook.
Following the earnings release, several brokerages updated or initiated coverage. Morgan Stanley reiterated an Overweight rating and maintained a $40.00 price target. Goldman Sachs upgraded Chime from Neutral to Buy, citing the potential upside from the new Chime Card to push revenue metrics beyond expectations. B.Riley initiated coverage with a Buy rating, pointing to the company’s profitability and growth potential.
In addition to analyst activity, Chime announced internal leadership changes, promoting three executives to senior roles including elevating Mark Troughton to President as part of its ongoing product expansion.
What this means for investors
Rothschild Redburn’s initial Neutral rating reflects a balance between growth opportunities tied to the partner model and rising credit exposure as lending becomes a larger component of Chime’s business. The firm’s view recognizes near-term levers for upside while underscoring longer-term valuation risks associated with a heavier credit profile.