Jefferies on Green Dot: Bluebird Presence at Wal-Mart Should Not Pose Threat

Jefferies & Company has published a research report on Green Dot Corporation

commenting on the presence of American Express Company's

"Bluebird" reloadable prepaid card at Wal-Mart

. In the report, Jefferies & Company writes, "Despite headlines that Bluebird carries only a $2 ATM withdrawal fee (following one free ATM withdrawal/month), We believe the card carries other fees as well. While consumers can register online to be mailed (in 10-14 days) an embossed Bluebird card free of charge, they pay $5 (vs. $3 for the WMT MoneyCard) to buy a temporary card off the display rack. Likewise, cash loads at WMT use reload "feeder packs" that cost $1, and if cardholders wish to load cash elsewhere, they use GDOT's MoneyPak for $4.95. We believe GDOT remains well-positioned (in terms of both distribution and product) to serve the core US un/underbanked prepaid demographic, and we reiterate our Buy rating on the stock." Jefferies & Company maintains its Buy rating and $36 price target on Green Dot, which is currently trading down $1.87 from yesterday's $32.11 closing price.