Wedbush Downgrades NetSpend (NTSP) to Neutral; Channel Not Keeping Up with Market Growth
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Price: $15.98 +0.13%
Rating Summary:
4 Buy, 15 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 25 | New: 24
Rating Summary:
4 Buy, 15 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 25 | New: 24
Trade NTSP Now!
Wedbush downgraded NetSpend (NASDAQ: NTSP) from Outperform to Neutral, PT lowered from $13 to $7.50.
Wedbush analyst says, "We are downgrading NetSpend due to concerns over continued loss of channel partners and weakness in active card growth. We see downside even to the company’s new lower guidance...Top line well below expectations as non-standard auto insurance channel ramps slower than expected...We believe revenue would need to re-accelerate in 2H11 in order to
exceed the low end of the revenue guidance range and that a possible reduction in expenses may slow growth even further...Lowering 2011 estimate to $0.43 from $0.45 due to lower revenue growth. Also lowering 2012 estimates to $0.50 from $0.56."
For more ratings news on NetSpend click here and for the rating history of NetSpend click here.
Shares of NetSpend closed at $7.67 yesterday, with a 52 week range of $7.35-$16.21.
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Wedbush analyst says, "We are downgrading NetSpend due to concerns over continued loss of channel partners and weakness in active card growth. We see downside even to the company’s new lower guidance...Top line well below expectations as non-standard auto insurance channel ramps slower than expected...We believe revenue would need to re-accelerate in 2H11 in order to
exceed the low end of the revenue guidance range and that a possible reduction in expenses may slow growth even further...Lowering 2011 estimate to $0.43 from $0.45 due to lower revenue growth. Also lowering 2012 estimates to $0.50 from $0.56."
For more ratings news on NetSpend click here and for the rating history of NetSpend click here.
Shares of NetSpend closed at $7.67 yesterday, with a 52 week range of $7.35-$16.21.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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