NEW YORK (MarketWatch) -- Green Dot Corp.'s stock GDOT, +5.36% rallied 7.2% in premarket trade Thursday, after Credit Suisse upgraded the supplier of pre-paid debit cards, given the stock's sizable potential upside and limited downside risk. Analyst Georgios Mihalos raised his rating to outperform from neutral, and his price target from $19 to $25, which is 58% above Wednesday's close of $15.85. Mihalos said the stock, which is being valued at a 60% discount to its peer group and cash position, has already priced in, and then some, investor concerns that the company's business model has unraveled after the loss of some exclusivity agreements with key customers. Even if there are more losses, Mihalos believes the stock's fair value would still be $23, which is 45% above Wednesday's closing. "We see a asymmetric risk/reward profile and sizable margin of safety with likely upward revisions and multiple expansion on the horizon," Mihalos wrote in a note to clients. The stock has lost 29% in the past three months through Wednesday, while the S&P 500 has gained 1.1%.

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