UPDATE: Morgan Stanley Initiates Green Dot at Underweight Rating, $17 PT on Expected Disappointment Ahead

In a report published Wednesday, Morgan Stanley analyst Smittipon Srethapramote initiated coverage on Green Dot GDOT with an Underweight rating and $17.00 price target.

In the report, Morgan Stanley noted, “While one of the biggest risk to the stock — the company losing exclusivity at key retail partners — has played out, we think the recent run up in stock price could set up the stock for disappointment given continued risk of market share erosion at Wal-Mart and other partners.”

Green Dot closed on Tuesday at $19.39.