Morgan Stanley reduces its rating on Green Dot GDOT from Overweight to Equal-weight. Price target is also lowered from $60 to $25.
Morgan Stanley comments, "GDOT remains the player to beat in prepaid, but we believe a less certain growth trajectory, impending margin pressure and ongoing regulatory and
competitive uncertainties may limit multiple expansion. We are downgrading GDOT from
Overweight to Equal-weight, lowering our price target to $25 (from $60), and reducing our F12/F13 revenue/EPS estimates that are now below consensus. We expect the stock to remain range-bound given the lack of any likely positive catalysts, regulatory related uncertainties, and continued investor concerns on what the realistic growth opportunity may be for prepaid."
GDOT closed at $21.79 on Wednesday.
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