Goldman Sachs Expects More M&A in Prepaid Space, NetSpend (NTSP) Raised to Neutral
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Price: $15.96 -0.06%
Rating Summary:
4 Buy, 15 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
4 Buy, 15 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Trade NTSP Now!
Goldman Sachs today upgraded NetSpend (NASDAQ: NTSP) from Sell to Neutral with a price target of $13.00 (from $11.00).
"Our Sell rating on NTSP did not work as the announced acquisition by TSS and better 2013 guidance provided two catalysts that re-rated the shares," said analyst Julio C. Quinteros.
He expects increased focus on M&A in the prepaid space.
"Within our smid-cap coverage, under our M&A framework, we currently rank as 1 Green Dot Corporation (NYSE: GDOT) (Neutral), Higher One Holdings (NYSE: ONE) (sell), and Sapient Corp. (Nasaq: SAPE) (Neutral), which reflects our qualitative assessment of each company's specialized offerings and a quantitative view based on our standardized departmental LBO model," added the analyst.
"At the highest level, we believe that the prepaid space remains an attractive growth area within payments . . . However, we balance our view against an
increasingly competitive environment," he said.
For an analyst ratings summary and ratings history on NetSpend (NASDAQ: NTSP) click here. For more ratings news on NetSpend click here.
Shares of NetSpend closed at $15.81 yesterday, with a 52 week range of $6.41-$15.96.
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"Our Sell rating on NTSP did not work as the announced acquisition by TSS and better 2013 guidance provided two catalysts that re-rated the shares," said analyst Julio C. Quinteros.
He expects increased focus on M&A in the prepaid space.
"Within our smid-cap coverage, under our M&A framework, we currently rank as 1 Green Dot Corporation (NYSE: GDOT) (Neutral), Higher One Holdings (NYSE: ONE) (sell), and Sapient Corp. (Nasaq: SAPE) (Neutral), which reflects our qualitative assessment of each company's specialized offerings and a quantitative view based on our standardized departmental LBO model," added the analyst.
"At the highest level, we believe that the prepaid space remains an attractive growth area within payments . . . However, we balance our view against an
increasingly competitive environment," he said.
For an analyst ratings summary and ratings history on NetSpend (NASDAQ: NTSP) click here. For more ratings news on NetSpend click here.
Shares of NetSpend closed at $15.81 yesterday, with a 52 week range of $6.41-$15.96.
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