UPDATE: Goldman Sachs Downgrades NetSpend Holdings to Sell on Pricing, Increased Competition

Goldman Sachs downgraded NetSpend Holdings (NASDAQ: NTSP) from Neutral to Sell and lowered the price target from $11.00 to $10.00.

Goldman Sachs said, "We downgrade NTSP shares from Neutral to Sell as we expect price compression and increased competition to offset card and volume growth. We believe this competition will pressure pricing in 2013, a risk that in our view is not fully reflected in Street expectations. To reflect our lower yield assumptions, we lower our 2012-2014 EPS forecast to $0.50/$0.56/$0.64 from $0.51/$0.61/$0.70."

NetSpend Holdings closed at $12.45 on Tuesday.

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