According to a report in Rueters, an analyst firm has upgraded its rating on Green Dot’s stock because American Express Company’s Bluebird prepaid cards have been pulled from Wal-Mart shelves.
From a Rueters article:
“While we lack official confirmation, our channel checks indicate that American Express Bluebird reloadable prepaid cards are being removed from the approximately 80 Wal-Mart locations in Western states where the cards were being piloted,” Jefferies analysts Jason Kupferberg and Ramsey El-Assal said in a note on Monday.
What is not clear is whether American Express decided to end the pilot or if Wal-Mart decided to pull the cards from their shelves. Either way, the announcement shows the double-sided nature of Green Dot’s Wal-Mart relationship in analysts’ eyes. They critique the company for being overly reliant on the giant retailer, but at the same time, analysts like Green Dot’s position because of that distribution network.
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