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
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