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In a report published Friday, Citigroup analyst Ashwin Shirvaikar reiterated a Neutral rating on
Green Dot CorporationGDOT.
In the report, Citigroup noted, “GDOT reported solid revenues and in-line EPS (excluding a tax benefit) for 3Q13. The 2013 revenue outlook was raised and the company guided toward double digit growth for 2014 based on recent distribution expansion and a newly introduced product suite at Walmart. GDOT's revenue momentum is seemingly building, particularly with the new Walmart cards that will occupy greater shelf-space and likely increase revenue per card based on the revised pricing scheme. We expect the stock to be strong tomorrow based on the improved trends, particular because consensus revenue expectations were not near double digit growth outlook (~5% vs. our prior ~9%). That said, the 2014 P/E of ~17.5x based on after-market quotes is no longer a discount and the longer-term concerns around limited visibility, competition and regulation remain. Therefore, we are maintaining our Neutral rating on GDOT.”
Green Dot Corporation closed on Thursday at $21.46.
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