UPDATE: Piper Jaffray Upgrades Green Dot Corporation to Overweight on Valuation and Outlook

Piper Jaffray raised its rating on Green Dot Corporation

from Neutral to Overweight with a reiterated $20 price target. Piper Jaffray noted, "While competitive pressures have crushed GDOT shares recently, we believe an attractive entry point exists based on the current valuation and potential future developments. Specifically, 48% of GDOT's share price is attributable to its $5.26 per share of cash and investments (as of 6/30/12). At this valuation, we believe the market has largely priced in competitive concerns, without considering the potential benefits of new distribution deals, channels (education, digital), and the checking account product." Green Dot Corporation closed at $11.08 on Tuesday.