William Blair analyst Christopher Kennedy has maintained their neutral stance on GDOT stock, giving a Hold rating on May 5.
Christopher Kennedy has given his Hold rating due to a combination of factors including Green Dot’s recent financial performance and strategic developments. The company has shown some positive signs, such as better-than-expected quarterly results and an increase in active accounts, which contributed to a rise in share value. However, these improvements were partly due to favorable comparisons and specific timing of items, which may not be sustainable in the long term.
Despite raising its full-year guidance and showing growth in all segments, challenges remain, particularly in the retail division, which has seen a decline. While Green Dot’s assets appear undervalued, the potential for volatility in results persists. The company’s strategic partnerships and focus on growth in embedded finance are promising, but the benefits of these initiatives may take time to materialize. Therefore, Kennedy maintains a cautious outlook with a Hold rating.
Kennedy covers the Technology sector, focusing on stocks such as Fidelity National Info, Evertec, and nCino. According to TipRanks, Kennedy has an average return of -3.6% and a 42.31% success rate on recommended stocks.
In another report released on May 5, KBW also maintained a Hold rating on the stock with a $10.00 price target.