Compass Point Raises Estimates on NetSpend (NTSP); Buyback Spotlights Varying Capital Allocation Strategies

June 13, 2012 9:16 AM EDT
Get Alerts NTSP Hot Sheet
Price: $15.98 --0%

Rating Summary:
    4 Buy, 15 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 6 | Down: 3 | New: 2
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Compass Point maintains a 'Neutral' on NetSpend (NASDAQ: NTSP) price target of $8.00.

Analyst, Douglas Greiner, said, "Following the announcement of a new $75M share repurchase authorization, we are revising our EPS estimates from $0.52 to $0.53 this year and from $0.60 to $0.66 next year. Our prior forecast already assumed a declining share count, however, the size of the announced authorization is a positive surprise. While direct deposit trends remain favorable and the distribution build is progressing, our view surrounding the stand-alone prepaid vendors including NetSpend remains cautious due to increasing competition."

For an analyst ratings summary and ratings history on NetSpend click here. For more ratings news on NetSpend click here.

Shares of NetSpend closed at $7.26 yesterday.

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