The revenue model of NetSpend (NASDAQ:NTSP) continues to be under pressure as the regulatory environment at this time doesn't accommodate it.
Wedbush said, "We believe NetSpend represents a potentially solid investment in the growth of the reloadable prepaid card category. Nevertheless, we remain cautious given the mounting regulatory overhangs on the shares...We believe reloadable prepaid interchange last in line to be reduced, since category has no real enemies...However, Menendez Bill adds to previous concerns around validity of NetSpend's revenue model."
Wedbush maintains a "Neutral" on NetSpend, which closed Friday at $12.82, up $0.35, or 2.81 percent. Wedbush lowered their price target on NetSpend from $15 to $13.
No comments:
Post a Comment