KBW analyst Sanjay Sakhrani late on Tuesday said in a report, "we view today's announcement as a positive for [American Express] as the addition of FDIC insurance strengthens the value proposition of the Bluebird product and likely intensifies competition given it was previously a point of differentiation between incumbent players such as [Green Dot (GDOT)] and American Express.
Of course, the availability of funds at Walmart stores is another point of differentiation for Bluebird.
"Given the uncertainty around how the new prepaid industry dynamics will play out, we would continue to remain on the sidelines for the incumbent prepaid players," Sakhrani wrote.
Sakhrani rates American Express "outperform," with a $70 price target. Shares of American Express $67.15 on Wednesday.The analyst rates Green Dot "market perform," with a $12 price target. Green Dot's shares closed Wednesday at $16.53. -- Written by Philip van Doorn in Jupiter, Fla. >Contact by Email. Follow @PhilipvanDoorn
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV