Chime Financial is receiving bullish predictions from analysts following its recent IPO. KBW research analyst Sanjay Sakhrani gave Chime an 'Outperform' rating with a price target of $42. The neobank serves low-income consumers and has successfully penetrated less than 5% of its total addressable market. With 8.6 million active members, Chime is positioned for growth by increasing product adoption and monetization. Despite some initial stock volatility, shares have remained above their IPO price of $27 and were trading over $31 shortly after going public.
Few digital platforms have the technology infrastructure, product-market alignment, and innovation velocity required to serve this demographic effectively and profitably, and we think Chime is one of them.
Chime is estimated to have penetrated less than 5% of its total addressable market, which comprises 196 million Americans who earn up to $100,000 in annual wages.
Sakhrani thinks Chime has "successfully harnessed this sticky user base" to drive increased product adoption and monetization, positioning the startup for sustained growth.
Shares rose 37% during its debut, and despite some initial volatility, they have managed to remain above the $27 IPO price.
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