Chime initiated with a Neutral at Compass Point on credit risk

As previously reported last night, Compass Point initiated coverage of Chime (CHYM) with a Neutral rating and $33 price target The firm calls Chime “the market-leading neobank with the most valuable member base,” adding that the company’s long-term opportunity “remains impressive.” With $777M of estimated cash post-IPO, the firm believes Chime’s ability to grow members at roughly 20% and revenue at 30% will likely continue for the next few years, but it believes revenue growth and average revenue per active member growth will primarily be driven by credit-related products, which amplify its credit risk.