CCB Stock Forecast & Price Target

Coastal Financial Corp's stock outlook appears positive due to its strategic partnerships with fintech companies, which transfer the credit risk of defaulted loans to partners, thereby enhancing the company's risk management framework. The recent surge in credit card issuances related to the Robinhood gold card, which has exceeded 100,000 cardholders, indicates significant demand and potential for revenue growth in the CCBX segment, Coastal's primary source of revenue. Additionally, expectations of further growth in fintech partnerships could position Coastal to retain loans exceeding $10 billion, paving the way for increased balance sheet growth and additional off-balance sheet revenue opportunities through interchange fees.

Coastal Financial Corp faces significant risks that contribute to a negative outlook on its stock, primarily stemming from potential economic slowdowns and increased competition. The anticipated rise in nonperforming assets and credit losses could lead to a shortfall in net income, adversely affecting earnings expectations. Additionally, the company may encounter revenue pressure in its CCBX segment due to Durbin interchange headwinds and a persistent low interest rate environment impacting net interest margins, which could further hinder profitability.