UPDATE: Compass Point Downgrades Global Cash Access Following Share Price Rise

In a report published Tuesday, Compass Point analyst Douglas Greiner downgraded the rating on Global Cash Access Holdings (NYSE: GCA) from Buy to Neutral, but reiterated the $8.50 price target.

In the report, Compass Point noted, “We downgrade our rating to Neutral from Buy. As of yesterday's close the shares are up 40% from the 52 week low of $5.71 as compared to the S&P 500 which was up 4% over the same time period. The 52 week low was approximately two and a half months ago. From here the upside to our $8.50 price target is just 6.5%. Our price target is based on 10.0x our updated estimate of 2014 Cash EPS. Since 2008 the shares have typically traded within the range of 8-10x NTM Cash EPS with a peak of 12x. Out of conservatism we are reluctant to push our valuation methodology to peak levels. Our bias is to revisit owning the shares if there is an opportunity closer to trough valuation levels or in the event we gain greater conviction Cash EPS levels are moving meaningfully higher.”

Global Cash Access Holdings closed on Monday at $7.98.