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Green Dot (GDOT) PT Raised to $40 at BTIG as New CEO Delivers Upside

May 12, 2020 6:22 AM EDT
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Price: $9.33 +1.63%

Rating Summary:
    4 Buy, 25 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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BTIG analyst Mark Palmer raised the price target on Green Dot (NYSE: GDOT) to $40.00 (from $35.00) after the company reported a 1Q20 top- and bottom-line beat versus management’s guidance. Upside came from a surge in gross dollar volume (GDV) due to stimulus funds directly deposited onto its prepaid debit cards, as well as its disclosure that April revenue was flat year-over-year thanks to the stimulus fund influx. Guidance for 2Q20 revenue growth is down ~10%, better than the 15% decline reflected in the consensus estimate.

The analyst stated "GDOT’s 1Q20 report may be remembered as the first one with new CEO Dan Henry at the helm. Henry in outlining his initial thoughts on the company’s new strategic direction made it very clear that any plans would not include a sale of its bank which he described as “a strategic asset, a compelling differentiator and a source of immense potential value.” He added that GDOT had not been taking full advantage of its scale, retail distribution and direct-to-consumer capabilities, adding his view that the reason why challenger banks had been able to enter the space to offer alternatives to the company’s cards was because it had “squandered” its advantages during the past five years".

while maintaining a Buy rating.



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