Deutsche Bank Upgrades Chime Financial to Buy on Growth Momentum

Deutsche Bank upgraded Chime Financial (NASDAQ:CHYM) to a Buy rating from Hold and raised its price target to $35 from $30, citing sustained multi-year growth momentum across core financial offerings like MyPay and Chime Prime alongside strategic acquisition activity.

"Deutsche Bank upgraded Chime Financial to Buy from Hold and raised its price target to $35 from $30," according to an Investing.com report.

Earnings Projections and Fiscal Outlook

Alongside the rating adjustment, the investment bank adjusted its profitability estimates upward for upcoming fiscal periods. Deutsche Bank raised its fiscal 2027 adjusted EBITDA estimate by approximately $71 million to $778 million. For fiscal 2028, the firm increased its adjusted EBITDA estimate by approximately $117 million, bringing the projected total to $1.094 billion.

These forward-looking financial projections reflect management's ongoing scaling of digital banking services and consumer lending products. The bank's analysts highlighted expanding adoption rates for newer consumer features as primary drivers behind the improved long-term earnings outlook.

Strategic Acquisition of Stride Bank

The upgrade also factors in Chime Financial's planned acquisition of Stride Bank for $590 million in cash. Under the terms of the transaction, Chime intends to transition the institution into a wholly owned subsidiary operating under the name Chime Bank, N.A.

Closing of the $590 million deal is subject to customary regulatory approvals. Management anticipates completing the regulatory review process and finalizing the corporate transition by the first half of 2027.

What the Upgrade Means for Digital Banking

The upward revision underscores a broader institutional focus on the profitability trajectory of digital-first financial platforms. By internalizing banking infrastructure through the Stride Bank acquisition while expanding higher-margin offerings such as MyPay and Chime Prime, Chime Financial aims to capture a larger share of net interest margins and fee-based revenue as it approaches its fiscal 2027 and 2028 operational milestones.