UPDATE: Morgan Stanley Downgrades Green Dot to Equal-Weight; Growth Visibility Challenges

Morgan Stanley reduces its rating on Green Dot

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.