William Blair analyst Christopher Kennedy has maintained their neutral stance on GDOT stock, giving a Hold rating today.
Christopher Kennedy has given his Hold rating due to a combination of factors impacting Green Dot’s performance and outlook. The company has shown positive signs with a 70% growth in adjusted EBITDA for the December quarter and an increase in monthly active users for the first time in nearly four years. However, the retail division remains a significant challenge, as it continues to face headwinds and is expected to decline further.
Despite exceeding revenue expectations, the guidance for 2025 suggests a decline in adjusted EBITDA and EPS, indicating potential difficulties in maintaining growth momentum. While the BaaS segment shows promise, particularly with its largest customer, the overall revenue growth is expected to be offset by a decline in margins. Given these mixed signals, Kennedy believes that while Green Dot’s assets may be undervalued, there is still considerable work needed to address the challenges, justifying the Hold rating.
According to TipRanks, Kennedy is a 2-star analyst with an average return of 0.2% and a 35.29% success rate. Kennedy covers the Technology sector, focusing on stocks such as Evertec, Payoneer, and Alkami Technology.
In another report released today, KBW also maintained a Hold rating on the stock with a $10.00 price target.