UPDATE: Credit Suisse Downgrades NetSpend Holdings to Neutral Following Acquisition
Credit Suisse downgraded NetSpend Holdings (NASDAQ: NTSP) from Outperform to Neutral and raised the price target from $15.00 to $16.00.
Credit Suisse said, "TSS announced that it has entered into an agreement to acquire NTSP for $16 per share in a $1.4B cash transaction (a +30% premium to Monday's (18th February) close/+24% premium to its 52 week high). … We believe the offer fairly values NTSP's growth prospects. We do not expect a competing bid to emerge. As such, we are downgrading NTSP to Neutral from Outperform with a new TP of $16 (in line with acq. price), up from our prior $15."
NetSpend Holdings closed at $12.29 on Tuesday.
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