Compass Point on Green Dot (GDOT): Increased Competition In Prepaid Warrants Caution
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Up: 10 | Down: 6 | New: 33
Rating Summary:
5 Buy, 24 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 6 | New: 33
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Compass Point on Green Dot (Nasdaq: GDOT): Increased Competition In Prepaid Warrants Caution
Analyst, Douglas Greiner, said, "Competitors with more abundant resources are increasingly challenging stand alone prepaid vendors Green Dot (Nasdaq: GDOT)(Neutral, $30PT) and NetSpend (Nasdaq: NTSP)(Neutral, $8PT) - warranting caution."
"According to Western Union (NYSE: WU)(Neutral, $20PT), global prepaid GDV is expected to increase 20% compounded annually through 2015 to $628 billion resulting in a $13-$20 billion potential revenue opportunity. Green Dot and NetSpend's combined 2011 total revenue was only $775 million. Given (1) the magnitude of the global opportunity and (2) that much of it remains untapped, competition is building."
Greiner mentioned that American Express (NYSE: AXP) (not covered) is expanding into the prepaid market and JPMorgan (NYSE: JPM) (not covered) has began offering prepaid cards at over 200 branches. Also, Moneygram (NYSE: MGI)(Neutral, $18PT) reported that it's most recent quarter has experienced increased volume in it prepaid network.
Analyst, Douglas Greiner, said, "Competitors with more abundant resources are increasingly challenging stand alone prepaid vendors Green Dot (Nasdaq: GDOT)(Neutral, $30PT) and NetSpend (Nasdaq: NTSP)(Neutral, $8PT) - warranting caution."
"According to Western Union (NYSE: WU)(Neutral, $20PT), global prepaid GDV is expected to increase 20% compounded annually through 2015 to $628 billion resulting in a $13-$20 billion potential revenue opportunity. Green Dot and NetSpend's combined 2011 total revenue was only $775 million. Given (1) the magnitude of the global opportunity and (2) that much of it remains untapped, competition is building."
Greiner mentioned that American Express (NYSE: AXP) (not covered) is expanding into the prepaid market and JPMorgan (NYSE: JPM) (not covered) has began offering prepaid cards at over 200 branches. Also, Moneygram (NYSE: MGI)(Neutral, $18PT) reported that it's most recent quarter has experienced increased volume in it prepaid network.
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