UPDATE: Credit Suisse Initiates Outperform, $24 PT on Higher One Holdings

Credit Suisse initiates coverage on Higher One Holdings

with an Outperform rating and a $24 price target as the company's niche proves resilient in the face of headwinds. Credit Suisse comments, "We believe ONE boasts a long runway for strong top-line growth. We estimate that ONE's OneDisburse product, the market-leading solution for outsourced student refund disbursement, has penetrated less than 20% of the addressable market. The OneAccount, a student-issued debit card that accounts for over 80% of total revenue, has penetrated just 10% of the market. Furthermore, the education end market has historically been less affected by the vagaries of the economy relative to other sectors. To the extent that the U.S. economy were to weaken or remain sluggish, we think ONE is relatively well positioned to outperform and deliver results in-line with expectations." ONE closed at $17.49 yesterday.