Needham & Company analyst Mayank Tandon raised the price target on Green Dot (NYSE: GDOT) to $40.00 (from $30.00) while maintaining a Buy rating.

The analyst commented, "GDOT delivered a strong 1Q, handily beating revenue estimates on the back of strength in processing and settlement fees and card revenues, while also driving significant operating leverage to comfortably exceed our and Street EBITDA margin and EPS forecasts. Citing increased uncertainty stemming from Covid-19, management pulled the full-year outlook while emphasizing the focus on driving profitable growth through a more disciplined investment program compared to the former leadership. Reflecting the approach, we are raising our EBITDA margin and EPS estimates significantly despite the NT pressure on revenue. The risk-reward looks attractive to us with the stock trading at ~10x ex-cash our higher FY21 EPS estimate."