Higher One (ONE) PT Slashed to $3 at Compass Point

Compass Point analyst Michael Tarkan reiterated a Sell rating on Higher One (NYSE: ONE) and cut his price target to $3.00 (from $4.00) following Q2 results, citing accelerating liquidity concerns.

Tarkan said, "We are maintaining our Sell rating on ONE shares and are lowering our price target to $3, from $4, after the company missed 2Q14 earnings and provided a concerning update on the regulatory front that indicates significant potential customer restitution payments that could meaningfully impact the company's liquidity position. Furthermore, aside from a slowdown in operating trends and the new liquidity concerns, we remain cautious around the ongoing Department of Education (ED) negotiated rulemaking process which will likely drive transformational fee and marketing changes to the company's core account business."

The firm is lowering adjusted EPS estimates to $0.60 and $0.65, respectively, from $0.64 and $0.74, to primarily reflect the 2Q miss and weaker core operating trends.

For an analyst ratings summary and ratings history on Higher One click here. For more ratings news on Higher One click here.

Shares of Higher One closed at $4.14 yesterday.

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