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2024.10.03 14:15
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CoreCard stock dips after report that Goldman is close to selling Apple Card

CoreCard (NYSE:CCRD) stock fell 3.7% after B. Riley Securities downgraded it to Neutral from Buy, citing concerns over Goldman Sachs (NYSE:GS) potentially selling its Apple Card account to JPMorgan Chase. Goldman, which accounted for 62% of CoreCard's business in Q2 2024, is in advanced talks for the sale. While CoreCard's other business is growing, losing the Apple Card would significantly impact earnings. The Neutral rating corresponds with the SA Quant rating of Hold.

  • CoreCard (NYSE:CCRD) stock dropped 3.7% in Thursday trading after B. Riley Securities downgraded the stock to Neutral from Buy as its largest client, Goldman Sachs (NYSE:GS), is reportedly in talks to sell its Apple Card account to a new bank partner.
  • Goldman Sachs accounted for 62% of its business in Q2 2024, B. Riley analyst Hal Goetsch said in a note to clients. According to a trade press report, Goldman is in advanced talks to sell the Apple Card account to JPMorgan Chase.
  • "We believe JP Morgan has substantial processing assets for credit cards and may take these services in-house," Goetsch said. "While the company has approximately one year left on its contract with Goldman, a purchase agreement to buy the portfolio by any bank could put a renewal of the CCRD contract in doubt."
  • Its business other than Goldman (GS) is growing nicely, the analyst said, but loss of the Apple Card business would be a "steep step back in earnings power."
  • The Neutral rating aligns with the SA Quant rating of Hold.
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