Green Dot's stock rallies after analyst said Wirecard's crisis could be a positive

Shares of Green Dot Corp. surged 4.1% in afternoon trading Thursday, after BTIG analyst Mark Palmer said the bank holding company stands to benefit from the crisis facing Germany-based competitor Wirecard AG . "We believe Wirecard's challenges could be a positive for [Green Dot], especially with CEO Dan Henry's stated desire for the company to be more forthright in competing and pursuing new avenues of growth," Palmer wrote in a note to clients. "Henry has made it clear that [Green Dot] under his leadership will focus on leveraging its bank charter, which distinguishes it from other prepaid debit card companies that he describes as marketing firms." Wirecard's U.S.-listed shares plummeted 64% toward a 3 1/2-year low after payment processor said its auditor can't find evidence of over $2 billion in cash on the company's balance sheet, and that there was evidence of "spurious balance confirmations" from the side of the trustee. Among other companies that BTIG's Palmer said could benefit from Wirecard's woes, shares of Intelligent Systems Corp. rose 1.3% and Paysign Inc. slipped 0.5%. Meanwhile, the S&P 500 eased 0.2% on the day.

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