UPDATE: Sterne Agee Downgrades NetSpend Holdings to Neutral on Pending Acquisition
Sterne Agee downgraded NetSpend Holdings (NASDAQ: NTSP) from Buy to Neutral and raised the price target from $15.00 to $16.00.
Sterne Agee noted, "We expect NTSP shares to open above our former $15 price target today following Total System Services' (TSS - $23.48 - Buy) offer to acquire NTSP for $16 per share. We do not expect any competing or counter offers to push shares beyond the offer price and are therefore downgrading the stock to a Neutral rating from Buy while also raising our price target to $16 from $15. The all-cash deal has been approved by NTSP's board, but still requires shareholder and regulatory approval."
NetSpend Holdings closed at $12.29 on Tuesday.
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