Investment bank Seaport has released a research report highlighting the promising future of digital banking company Chime Financial (CHME, Financial). The report notes that Chime not only has ample room to expand its market share but also has the potential to deepen customer relationships, which are positive factors expected to enhance its financial performance over the coming years.
Following its recent IPO, Chime, which provides banking services via a mobile app, is projected to achieve annual revenue growth between 26% and 32% over the next two years. Analysts emphasize that as Chime continues to scale, there is room for further optimization of its profit margins and overall profitability.
Seaport has initiated coverage of the stock with a "buy" rating and set a price target of $37. At the time of reporting, Chime's stock price had risen by 5.4% to $34.91.
