Compass Point Sees Wal-Mart Stores, Inc. Deal As Positive For Green Dot Corporation

In a report published Wednesday, Compass Point analyst Michael Tarkan reiterated a Buy rating and $27.00 price target on

. In the report, Compass Point noted, “According to the New York Times, Green Dot and Walmart (WMT-NC) have reached an agreement to offer GoBank checking accounts in Walmart locations nationwide. The announcement is Walmart's latest push into financial services for underbanked individuals and follows a pilot program the two entities were running in 20 stores in Texas. We view this favorably for two key reasons: (1) it opens up a meaningful distribution channel for GoBank that serves 140 million customers in the U.S. on a weekly basis; and (2) it further strengthens the Walmart/Green Dot relationship ahead of the key general purpose reloadable (GPR) card contract renewal. We reiterate our Buy rating and $27 price target on GDOT shares.” Green Dot Corporation closed on Tuesday at $18.82.