Deutsche Bank Upgrades Chime Financial Stock

The bank lifted Chime's price target to $35 following the company's agreement to acquire Stride Bank.

Updated on Oct. 16, 2026 in Banking

Deutsche Bank Upgrades Chime Financial Stock

Live Poll

Do you trust short-term paycheck advance services to help you manage your personal finances?

Deutsche Bank upgraded Chime Financial from Hold to Buy in October 2026, raising its price target to $35. This follows Chime's deal to acquire Stride Bank for $590 million, a move expected to provide better control over its banking infrastructure.

Why it matters

The upgrade reflects analyst confidence in Chime's growth through its MyPay and SpotMe services. By integrating Stride Bank, Chime aims to reduce reliance on partner banks and achieve $100 million in net synergies.

Deutsche Bank increased Chime's price target to $35 from $30 as analysts raised EBITDA forecasts for 2027 and 2028. Chime anticipates $100 million in synergies from its $590 million acquisition of Stride Bank.

The players

Deutsche Bank

This global financial institution provides investment banking, corporate banking, and asset management services.

Chime Financial

This fintech company offers mobile banking services, including fee-free overdraft protection and early direct deposit access.

Stride Bank

This Oklahoma-based financial institution provides traditional banking services and partners with fintech companies to offer financial products.

The details

Chime plans to operate Stride Bank as a subsidiary named Chime Bank, N.A., while maintaining total assets below $10 billion. The acquisition allows Chime to expand its MyPay feature, which offers liquidity up to $500, and its SpotMe overdraft buffer.

September 2026: Chime disclosed the Stride Bank acquisition agreement.
October 2026: Deutsche Bank announced the stock upgrade to Buy.
First half 2027: The acquisition of Stride Bank is expected to close.

Market Dynamics

Chime's move mirrors the broader industry trend of fintech firms pursuing direct bank charters to reduce reliance on third-party partners. This transition allows companies to secure long-term infrastructure control while managing regulatory constraints.

Investors may see higher 2027 and 2028 EBITDA projections as Chime streamlines its operations through the bank acquisition. Customers should monitor how this restructuring potentially evolves the fee structures or availability of products like MyPay and SpotMe.

The takeaway

The acquisition marks a strategic pivot for Chime as it moves to internalize core banking functions. Users can continue to utilize MyPay advances and SpotMe overdraft buffers as the company targets long-term growth and infrastructure efficiency.