Deutsche Bank has resumed its coverage of Chime (CHYM, Financial), assigning a Hold rating with a price target set at $35. The bank's analysis includes 25 companies within the payments, processors, and IT services sectors. Among these, nine have been rated as Buys, while 14, including Chime, received Hold ratings. This sector has lagged behind the S&P 500 Index throughout the year, influenced by investor optimism surrounding the November elections, which later proved excessive.
The bank identifies prevailing challenges such as trade uncertainty and consumer spending hesitation, suggesting the most uncertain industry outlook in five years. In light of these challenges, Deutsche Bank recommends a focus on "high-quality compounders," which demonstrate steady sales growth, expanded profit margins, and consistent free cash flow.
