UPDATE: Compass Point Downgrades Green Dot; Lowers PT

According to a research report published this morning, Compass Point has downgraded Green Dot GDOT from Buy to Neutral, and lowered PT from $43 to $30. In the report, Compass Point commented, "Green Dot is positioned to continue winning share of the untapped unbanked market of 17M households. Although, penetration is already more than 10M households. To further drive growth, the company targets the larger underbanked market of 143M households. This market is highly competitive and Green Dot is working to develop a differentiated offering (in part through Loopt), but future success is uncertain and the transitional period warrants caution. Near-term, however, we forecast the untapped unbanked market opportunity to support revenue growth of +20% through 2013. With no debt, net cash per share is $4.24. Our revised $30 price target equals 14x our estimate of next year's EPS. Our lowered target multiple of 14x (20x previously) more heavily weights the risks of the transitional period." Green Dot closed yesterday at $26.42.