UPDATE: JMP Securities Maintains Market Outperform on Green Dot on Steady Market Share
In a report published Monday, JMP Securities analyst David Scharf Maintained Market Outperform rating on Green Dot Corporation (NYSE: GDOT), with a $30.00 price target.
According to the report, store checks with 50 Walmart (WMT $78.04; not covered) stores across 35 states have been conducted following the holiday season in order to review the expanded MoneyCard product offerings and continued competition with American Express's (AXP $88.55; not covered) Bluebird product.
“Our primary takeaways are: (1) Green Dot market share at Walmart appears to be holding steady, (2) the expanded product suite, particularly the “Preferred” Card, is gaining some early traction, and (3) the Amex Bluebird card's product placement seems uneven and mixed. Separately, we contacted over 30 Pay-O-Matics in the New York Metro area and confirmed Green Dot has now rolled out its prepaid product with all three of the previously announced check cashing partners—the company had yet to enter Pay-O-Matic during our October channel checks. We continue to believe shares remain attractive given the company's ability to maintain dominant market share in the face of increased competition, improving card usage patterns, expanding distribution, guidance calling for a return to double-digit revenue growth in 2014, and the ability to strengthen its relationship with its largest partners (walmart) through an expanded product suite.”
GDOT closed Friday at $24.32.
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