Jefferies said its channel checks indicate CVS Caremark (CVS), one of Green Dot's (GDOT) largest distribution partners, may offer as soon as next week American Express' (AXP) new prepaid cards. The firm believes the potential loss of share at CVS could represent incremental headline risk for Green Dot and lowered its price target for Green Dot shares to $13 from $17. Jefferies also dropped its 2012 and 2013 earnings estimates for Green Dot citing American Express' recent penetration of Green Dot's key distribution partners Wal-Mart (WMT) and CVS.
Happy demi-anniversary, stock market rally. Will the honeymoon ever end?