Wedbush Upgrades NetSpend (NTSP) to Outperform; Solid Investment in a Reloadable Category Validated by our Survey

Wedbush upgraded NetSpend (NASDAQ: NTSP) from Neutral to Outperform. PT $13.

Wedbush analyst says, "We believe NetSpend represents a solid investment in 20%+ reloadable prepaid growth. We believe shares do not reflect this growth and overstate regulatory risks; thus, we are upgrading to OP...2012 consensus may create a rocky road, but does not appear to represent actual expectations. We believe that 2012 estimates may be revised down to a more reasonable 25-30% earnings growth rate, which in our opinion is more than reflected in the current share price...High short interest addressed by $25 million share buyback. We believe the buyback could help offset pressure from the 4 million shares sold short as of 5/31."

For more ratings news on NetSpend click here and for the rating history of NetSpend click here.

Shares of NetSpend closed at $8.29 yesterday.

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