UPDATE: Jefferies Initiates Green Dot at Hold

Jefferies is out with its report today on Green Dot (NASDAQ: GDOT), initiating GDOT at Hold.

In a note to clients, Jefferies writes, "We believe the fundamental story at GDOT remains attractive, as it continues to benefit from its first-mover advantage in the prepaid card market. But even though the stock is well off its early 2011 highs, its still not cheap (16x our FY 2012E Pro Forma EPS) in the context of risk factors such as increasing competition, significant client concentration (WMT ~60% of revs), potential pricing pressure, and the regulatory environment. We are initiating coverage of GDOT with a Hold rating and $36 price target."

Shares of GDOT closed Monday at $32.35, down 0.43% from Friday's close.