UPDATE: Goldman Sachs Upgrades NetSpend Holdings to Neutral Following Acquisition

Goldman Sachs upgraded NetSpend Holdings

from Sell to Neutral and raised the price target from $11.00 to $13.00. Goldman Sachs commented, "On 2/19/2012, TSS announced that it entered into a definitive agreement to acquire NTSP for $1.4 bn or $16 per share (expected to close by mid-2013). We upgrade the shares to Neutral as we expect the announcement will likely support the shares and raise our 12-month price target to $13 (from $11) to reflect an increased M&A weighting of 50% (from a 30% weight). Note that our Rank 1 (high probability) and 20X multiple on our CY13 EPS of $0.65 is unchanged." NetSpend Holdings closed at $15.81 on Wednesday.