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

Core Viewpoint - Chime Financial, Inc. (NASDAQ:CHYM) is considered a promising technology stock by hedge funds, with a maintained Buy rating and a price target of $40 from Morgan Stanley [1]. Group 1: Regulatory Impact - The recent court ruling on debit interchange fees is not expected to significantly impact Chime Financial, as its bank partners are smaller institutions exempt from the ruling [2]. - The exemption from the ruling is crucial since debit fees constitute a large portion of Chime Financial's revenue, allowing the company to maintain its pricing model and protect its income stream [3]. Group 2: Business Model Stability - The Federal Reserve is appealing the court's decision, and any potential changes resulting from this ruling would likely take years to implement if the appeal fails, indicating that Chime Financial's business model is secure in the near to medium term [4]. - Chime Financial operates as a consumer fintech company, providing banking services through FDIC-insured partners [4].