UPDATE: Compass Point Upgrades NetSpend Holdings to Neutral on Continuing Momentum
Compass Point upgraded NetSpend Holdings (NASDAQ: NTSP) from Sell to Neutral and raised the price target from $5.00 to $10.00.
Compass Point commented, "Following the release of 4Q'12 earnings results we upgrade our rating from Sell to Neutral and revise our price target from $5 to $10. Following stand-alone prepaid vendor peer Green Dot's struggles with competition and subsequent +60% one-day share price decline, we were severely concerned about the potential for a similar impact to NetSpend. Our previous $5 price target was predicated on a distressed scenario unfolding. Our concerns did not materialize in the second half of 2012. Moreover, management guided to a strong 2013 outlook."
NetSpend Holdings closed at $11.42 on Wednesday.
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