William Blair analyst Christopher Kennedy has maintained their neutral stance on GDOT stock, giving a Hold rating on February 28.
Christopher Kennedy has given his Hold rating due to a combination of factors surrounding Green Dot’s current situation. The company is undergoing a leadership transition and strategic review, which introduces uncertainty about its future direction. Despite the potential undervaluation of Green Dot’s assets, as indicated by its low trading multiple compared to historical averages, there are still significant challenges to address.
Green Dot faces sluggish fundamental trends due to issues like customer deconversions and challenges in the retail sector, compounded by management’s strategic decisions to close certain brands. Additionally, the company’s revenue concentration from its two largest customers poses risks, as does the pressure on margins from increased costs. These complexities contribute to the Hold rating, as the potential for improvement is balanced by the current uncertainties and operational challenges.
In another report released on February 28, KBW also maintained a Hold rating on the stock with a $10.00 price target.