Jefferies Reiterates Buy on Blackhawk Network (HAWK); Sees Upside to 2017 Estimates
- Wall Street falls as investors ready for Trump's inauguration
- IBM (IBM) Tops Q4 EPS by 13c, FY17 EPS Guidance Beats Consensus
- American Express (AXP) Misses Q4 EPS by 7c, FY17 EPS Guidance Tops Views at Mid-Poinit
- Skyworks Solutions (SWKS) Tops Q1 EPS by 3c, Offers Q2 Guidance, Announces Buyback
- After-Hours Stock Movers 01/19: (SWKS) (QRVO) (NVAX) Higher; (AFMD) (SGYP) (IBM) Lower (more...)
Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.
Jefferies reiterated a Buy rating and $43.00 price target on Blackhawk Network (NASDAQ: HAWK). Following the EMV fraud liability shift last year, HAWK's grocery distribution partners started seeing elevated levels of counterfeit card fraud. However, management has sounded very confident that sales lost to EMV will rebound to prior levels over time. an analysis shows that, if 50% of card sales lost to EMV return, this would translate to $0.17 (6%) of upside to 2017 Street estimates, while if 100% were to come back this would mean $0.37 (13%) of upside.
Analyst Ramsey El-Assal commented, "We see upside to HAWK's 2017 estimates as some portion of revenue and profit lost to EMV in '16 should flow back in next year (see proprietary scenario analysis on page 10). While the timing of EMV compliance in HAWK’s retailer base, and the rate at which revenue returns is difficult to pin down, we believe the longer-term opportunity remains intact, and reiterate our Buy rating."
Shares of Blackhawk Network closed at $31.83 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Ceragon Networks (CRNT) PT Raised to $3 at Jefferies Following Preannouncement
- Plexus (PLXS) PT Raised to $57 at RBC Capital
- PTC Inc. (PTC) PT Raised to $60 at Citi; Reiterates Buy
Create E-mail Alert Related CategoriesAnalyst Comments
Related EntitiesJefferies & Co
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!