UPDATE: JP Morgan Downgrades Green Dot to Neutral Post Guide Slash
JP Morgan reduced its rating on Green Dot (NYSE: GDOT) from Overweight to Neutral and lowered its price target from $33 to $20.
JP Morgan commented, "GDOT's 2Q and outlook were very disappointing, scoring a big winning round for the bears in the ongoing bull-bear fight. GDOT cut its FY12 revenue growth guidance in half, and now sees run-rate mid/high-single digit growth instead of 20+% previously. This substantial cut can be explained by much lower visibility due to 1) accelerated competition at key distributors and 2) tighter risk controls employed by GDOT that could impair activations. Given the sudden reduction in visibility and in management credibility, we do not see a quick-fix to stock sentiment despite conservative guidance."
Green Dot closed at $23.29 on Thursday.
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