Barrington Research Downgrades NetSpend (NTSP) to Market Perform; Reduced Revenue Growth Assumptions
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Price: $15.98 --0%
Rating Summary:
1 Buy, 14 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
1 Buy, 14 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barrington Research downgraded NetSpend (NASDAQ: NTSP) to Market Perform.
Barrington analyst says, "NetSpend reported Q2/11 results that were mixed while revenue guidance for FY/11 was lowered...We are adjusting our 2011 EPS estimate to $0.44 from $0.43 and lowering our 2012 EPS estimate to $0.52 from $0.60 to reflect our belief that revenue growth will be less than the 20%-plus that we had anticipated when we initiated coverage in April of this year."
"NetSpend is actively seeking new distribution partners and will begin offering GPR cards through its joint venture with Black Entertainment Network (BET) in 2012. We do not believe the company will be able to add new distribution that will negate the impact of the loss of revenue from the three check cashing partners for the 2012 time period."
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.
Barrington analyst says, "NetSpend reported Q2/11 results that were mixed while revenue guidance for FY/11 was lowered...We are adjusting our 2011 EPS estimate to $0.44 from $0.43 and lowering our 2012 EPS estimate to $0.52 from $0.60 to reflect our belief that revenue growth will be less than the 20%-plus that we had anticipated when we initiated coverage in April of this year."
"NetSpend is actively seeking new distribution partners and will begin offering GPR cards through its joint venture with Black Entertainment Network (BET) in 2012. We do not believe the company will be able to add new distribution that will negate the impact of the loss of revenue from the three check cashing partners for the 2012 time period."
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.
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