Chime's Stride Bank Deal to Likely Boost Credit Growth, Morgan Stanley Says

11:05 AM EDT, 09/09/2026 (MT Newswires) -- Chime Financial's (CHYM) planned $590 million acquisition of Stride Bank "should accelerate" credit expansion, product development and its push toward higher-income customers while improving profitability, Morgan Stanley said in a report Wednesday. The investment bank said owning a national bank charter should reduce Chime's reliance on partner banks, expand its ability to "originate loans" and speed the launch of "new credit products." The company's $100 million net synergy target is also viewed as "achievable" and could provide meaningful earnings upside by 2028. A key issue will be how Chime manages deposit and asset growth while remaining below the $10 billion "threshold" needed to preserve its "Durbin exemption" and favorable debit-card interchange economics, according to the report. The investment bank raised the company's 2026 revenue estimates to $2.77 billion from $2.74 billion and adjusted earnings before interest, taxes, depreciation, and amortization to $493 million from $487 million prior. For 2027, revenue is now estimated at $3.38 billion, up from $3.33 billion, while adjusted EBITDA estimate rises to $794 million from $770 million prior, the report said. Morgan Stanley has an overweight rating on Chime and raised its price target to $40 from $39. Price: 33.97, Change: +1.66, Percent Change: +5.12