Credit Suisse Instigates Breakout In Green Dot With Well-Timed Upgrade

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Green Dot Corporation GDOT shares are trading higher by $1.20 (7 percent) at $17.05 in Thursday's session,. The catalyst for the rally was an upgrade from Credit Suisse from Neutral to Outperform and price target raise from $19.00 to $25.00. It was named as the firm's top small-cap pick

The issue, which peaked six months after its IPO in December 2010 at $65.10, cascaded all the way to $9.05 in July 2012. From that level, it has been an arduous move higher with rallies ending at the $27.00 level in late 2013 and early 2014. Towards the end of 2014, it peaked at $24.47 before declining to $13.87 on February 3 and mounting its latest rebound.

More recently, it was struggling to clear the $16.00 level, making nine consecutive highs between $15.82 and $15.96. With the opening price $0.95 higher (Wednesday's close of $15.85 compared with today's open of $16.80), it managed only a $0.29 pullback before clearing the $17.00 level.

The current high coincides with its January 39 high at $17.17.