Compass Point Starts NetSpend (NTSP) at Neutral
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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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Compass Point initiates coverage on NetSpend (NASDAQ: NTSP) with a Neutral. PT $9.50.
The firm said the company is well positioned to benefit from growth cycle underway serving the domestic under-banked market, particularly under the seasoned leadership of payments industry veterans. However, with approximately 60% of product sold through the alternative financial services channel (check cash servicers), the firm notes that headwinds may arise from increased check cashing regulations. In particular, ACE accounts for in the range of one-third of total revenues.
The stock trades at a discount to the October 2010 IPO price of $11 and at approximately one-half of the peak P/E multiple since that time, though at a premium to Green Dot (Nasdaq: GDOT), the firm notes.
For an analyst ratings summary and ratings history on NetSpend click here. For more ratings news on NetSpend click here.
Shares of NetSpend closed at $9.61 yesterday.
The firm said the company is well positioned to benefit from growth cycle underway serving the domestic under-banked market, particularly under the seasoned leadership of payments industry veterans. However, with approximately 60% of product sold through the alternative financial services channel (check cash servicers), the firm notes that headwinds may arise from increased check cashing regulations. In particular, ACE accounts for in the range of one-third of total revenues.
The stock trades at a discount to the October 2010 IPO price of $11 and at approximately one-half of the peak P/E multiple since that time, though at a premium to Green Dot (Nasdaq: GDOT), the firm notes.
For an analyst ratings summary and ratings history on NetSpend click here. For more ratings news on NetSpend click here.
Shares of NetSpend closed at $9.61 yesterday.
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