Nomura Securities Answers Investors' Questions on Green Dot (GDOT): 30% Additonal Downside Is Possible
Tweet Send to a FriendGet Alerts GDOT Hot Sheet
Price: $18.10 -0.77%
Rating Summary:
7 Buy, 21 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Rating Summary:
7 Buy, 21 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Trade GDOT Now!
Nomura Securities maintains a 'Neutral' on Green Dot (NYSE: GDOT) price target of $22.00 (from $29.00).
Analyst, Bill Carcache, said, "With GDOT shares continuing to hit new lows, we’ve received a number of questions from investors wondering whether shares have hit a bottom. In this note, we describe why we believe additional downside is possible...Possible headwinds include: (1) increase in Walmart’s commission share from 22% in 2012 to 26% in 2013, (2) integration risk associated with recently completed acquisitions, (3) difficult-to-achieve growth targets given the loss of Turbotax, (4) continued margin pressure, and (5) negative impact from new, low-cost competitor offerings."
Also noted, "In contrast to other payments industry players that report results on a GAAP basis and call out one-timers only periodically (e.g., Visa (NYSE: V), MasterCard (NYSE: MA), American Express (NYSE: AXP), Capital One (NYSE: COF), Discover (NYSE: DFS), Total Systems (NYSE: TSS), Western Union (NYSE: WU)), GDOT consistently pushes non-GAAP EPS. We view non-GAAP EPS as an illusory earnings metric that inappropriately ignores the economic cost of options granted to Walmart and stockbased compensation expense."
For an analyst ratings summary and ratings history on Green Dot click here. For more ratings news on Green Dot click here.
Shares of Green Dot closed at $21.73 yesterday, with a 52 week range of $20.19-$36.59.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
Analyst, Bill Carcache, said, "With GDOT shares continuing to hit new lows, we’ve received a number of questions from investors wondering whether shares have hit a bottom. In this note, we describe why we believe additional downside is possible...Possible headwinds include: (1) increase in Walmart’s commission share from 22% in 2012 to 26% in 2013, (2) integration risk associated with recently completed acquisitions, (3) difficult-to-achieve growth targets given the loss of Turbotax, (4) continued margin pressure, and (5) negative impact from new, low-cost competitor offerings."
Also noted, "In contrast to other payments industry players that report results on a GAAP basis and call out one-timers only periodically (e.g., Visa (NYSE: V), MasterCard (NYSE: MA), American Express (NYSE: AXP), Capital One (NYSE: COF), Discover (NYSE: DFS), Total Systems (NYSE: TSS), Western Union (NYSE: WU)), GDOT consistently pushes non-GAAP EPS. We view non-GAAP EPS as an illusory earnings metric that inappropriately ignores the economic cost of options granted to Walmart and stockbased compensation expense."
For an analyst ratings summary and ratings history on Green Dot click here. For more ratings news on Green Dot click here.
Shares of Green Dot closed at $21.73 yesterday, with a 52 week range of $20.19-$36.59.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Topeka Capital Upgrades Pacific Sunwear of California (PSUN) to Buy
- Jefferies Lifts Numbers on Diana Shipping (DSX) Post Q1
- salesforce.com, Inc. (CRM) Reports In-Line Q1 EPS; Issues In-Line Q2, FY14 Outlook
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Nomura, Earnings
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
