Wedbush Downgrades NetSpend (NTSP) to Neutral; Channel Not Keeping Up with Market Growth
Tweet
Share
E-mailGet Alerts NTSP Hot Sheet
Price: $15.98 --0%
Rating Summary:
1 Buy, 14 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
1 Buy, 14 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Join SI Premium – FREE
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.
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.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- RBC Capital Downgrades Accelerant Holdings (ARX) to Sector Perform
- Lake Street Downgrades SoundThinking (SSTI) to Hold
- Nomura/Instinet Downgrades Korea Electric Power Corp. (015760:KS) (KEP) to Neutral
Create E-mail Alert Related Categories
DowngradesSign 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!
