UPDATE: Compass Point Upgrades Green Dot on Higher Estimates, Multiple Expansion

In a report published Tuesday, Compass Point analyst Douglas Greiner upgraded the rating on Green Dot Corporation (NYSE: GDOT) from Neutral to Buy, and raised the price target from $26.00 to $30.00.

In the report, Compass Point noted, “We raise our 12 month price target from $26 to $30 on slightly higher estimates and meaningful multiple expansion. Given the +30% upside from current levels we upgrade our rating from Neutral to Buy. Moreover, for investors looking out more than 12 months, it appears that EBITDA growth could support share price appreciation back to the initial July 2010 IPO price level of $36 by year end 2015 (+50% from current levels). Recent developments tied to the Affordable Care Act and the company's massive distribution expansion support the EBITDA growth outlook through 2015. We slightly raise our 2014/2015 EBITDA estimates to $123/$135 million from $121/$133 million and our EPS estimates to $1.35/$1.45 from $1.30/$1.40.”

Green Dot Corporation closed on Friday at $22.96.