UPDATE: Deutsche Bank Downgrades Green Dot to Hold; Model Broken Down

Deutsche Bank lowered its rating on Green Dot

from Buy to Hold and reduced its price target from $35 to $18. Deutsche Bank noted, "GDOT reported 2Q12 operating revs of $139m and pro forma EPS of $0.35, both shy of our respective $144m and $0.38 ests. Surprisingly, GDOT lowered guidance significantly, highlighting increased competition and additional risk/compliance costs. Unfortunately, we were under the impression that GDOT would compete effectively and had its operational costs under control to adjust to the changing prepaid environment, but we were wrong." Green Dot closed at $23.32 on Thursday.