UPDATE: Goldman Sachs Downgrades Higher One Holdings to Sell on Low Enrollment and Pricing Pressure

Goldman Sachs downgraded Higher One Holdings

from Neutral to Sell and lowered the price target from $10.00 to $9.00. Goldman Sachs noted, "We downgrade ONE to Sell from Neutral as we believe that a continued mix shift to lower priced accounts, negative enrollment trends and a recent decrease in One Account adoption rates will drive lower revenue growth through our forecast horizon. Admittedly, the shares lagged significantly (down 43% in 2012 vs. a 13% increase for the S&P 500), but we believe that further revisions to estimates will weigh on share performance in 2013. Consistent with this view, we lower our 2012/2013/2014 EPS estimates to $0.61/$0.65/$0.68 from $0.62/$0.76/$0.83." Higher One Holdings closed at $12.11 on Tuesday.