One beaten-down financial services company is getting a little love from an analyst tracking the stock. On Friday, Green Dot (NYSE: GDOT) was the subject of a new, and very bullish, research note issued by Craig-Hallum prognosticator Bradley Berning. At is current level, the stock is undervalued by nearly 60%, Berning believes, and is well poised to spring higher. The analyst is reiterating his buy recommendation on Green Dot shares, and his $72 per share price target. Green Dot is known for its prepaid debit cards, which are widely available in many retail stores and supermarkets. The company also operates as a bank, with a straightforward and low cost offering that targets first-time or otherwise unbanked individuals. Image source: Getty Images. The Craig-Hallum analyst argues that investors are not aware that the company's "boring" business is full of potential. One aspect of its operations is its Reload Network, within which debit card holders can "refill" the amounts packed into their plastic. They can do so at a vast number of registers at the company's partner retailers, one reason why Berning feels that this business alone is worth a minimum of $1 billion (in its entirety, Green Dot's market capitalization is just over $2.5 billion). Meanwhile, other Green Dot operations are headed north. For example, the analyst expects that the number of cash transfers through the company's network will improve at a 4% compound annual growth rate (CAGR) through 2025. The market is not taking into account this kind of trajectory, Berning believes. "Excluding the reload network, investors are effectively buying the rest of the business at 6 [times] EV/EBITDA, despite key metrics trending in a positive direction and a long list of future growth opportunities, he wrote in his note. 10 stocks we like better than Green Dot When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Green Dot wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Green Dot. The Motley Fool has a disclosure policy.Source