UPDATE: Compass Point Research & Trading Reiterates Neutral Rating, Raises PT on Green Dot Corporation

In a report published Wednesday, Compass Point Research & Trading reiterated its Neutral rating on Green Dot Corporation (NYSE: GDOT), and raised its price target from $10.00 to $13.00.

Compass Point noted, “Following the company's unveiling of GoBank we are updating our views. Both our Neutral rating and $1.31 FY'12 EPS estimate remain unchanged. However, we are revising our FY'13 EPS estimate to $1.00 ($0.76 previously) resulting in a new price target of $13 ($10 previously). The new mobile account offering is feature rich and targets a new end market. However, at this point, there is a lack of visibility into the size and timing of any incremental benefit. In aggregate, there remains enough uncertainty in front of the company that we remain cautious. To the downside, increasing competition may pressure GPR card pricing as well as new card sales. The inability to sell new cards would be magnified by high churn rates. On the other hand, management is striving to generate sustainable earnings through serving unique niches within the broader banking market as demonstrated by the GoBank launch. With the shares +59% off the 52 low, we commend investors who bought the steep sell off, but remain comfortable with our existing recommendation as of 4/27/12 to remain on the sidelines during this transitional period.”

Green Dot Corporation closed on Tuesday at $14.36.