Morgan Stanley Maintains a Buy Rating on Chime Financial (CHYM)

Chime Financial, Inc. (NASDAQ:CHYM) is one of the Most Promising New Technology Stocks to Buy According to Hedge Funds. On September 11, James Faucette from Morgan Stanley maintained a Buy rating on Chime Financial, Inc. (NASDAQ:CHYM) with a price target of $40.

The analyst noted that he believes the company will not be hit hard by the recent court ruling on debit interchange fees. The court vacated the Federal Reserve’s Regulation II; however, this mainly affects banks with assets over $10 billion. Chime Financial, Inc. (NASDAQ:CHYM)’s bank partners are smaller and therefore exempt from the ruling.

He added that this exemption is important because debit fees make up a large part of Chime Financial, Inc. (NASDAQ:CHYM)’s revenue. Keeping their pricing model unchanged helps protect their income stream.

Additionally, the Federal Reserve is appealing the decision. Any changes due to this ruling would likely take several years to occur if the appeal fails. Faucette sees this as a sign that the company’s business model is safe for the near and medium term.

Chime Financial, Inc. (NASDAQ:CHYM) is a consumer fintech company offering banking services through FDIC-insured partners.

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Disclosure: None. This article is originally published at Insider Monkey.