Green Dot price target lowered to $20 from $24 at Needham

Needham analyst Mayank Tandon lowered the firm’s price target on Green Dot to $20 from $24 but keeps a Buy rating on the shares. The company’s Q4 results were "solid" but its FY23 outlook was below consensus on EBITDA and EPS due the loss of certain key customers, ongoing inflationary pressures, and rising interest rates which are weighing on the business, the analyst tells investors in a research note. The firm remains positive on Green Dot longer term however and believes that the company is "taking its medicine" in FY23 to set up a return to margin expansion and profitability improvement in FY24.