Wedbush Remains Sidelined on Blackhawk Network (HAWK) as EMV Challenge Offsets Growth From Acquisitions
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Rating Summary:
4 Buy, 16 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 11
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Wedbush reiterated a Neutral rating on Blackhawk Network (NASDAQ: HAWK), and cut the price target to $33.00 (from $38.00), following the company's 4Q earnings report. Revenue of $381m was in line with consensus driven by the acquisitions of Parago and Achievers, which boosted transaction dollar volume growth. EPS of $1.26 was higher than consensus $1.24, but adj. EBITDA of $107.6m missed consensus $110.0m. The miss was due to expenses HAWK incurred from acquisitions.
Analyst Gil Luria commented, "We expect the mix shift to less profitable categories to reduce profit growth, eventually leading to negative terminal growth once mobile gifting and stored value replace physical gift cards. However, short term growth continues to be robust as the company adds categories, acquisitions and tax benefits."
For an analyst ratings summary and ratings history on Blackhawk Network click here. For more ratings news on Blackhawk Network click here.
Shares of Blackhawk Network closed at $34.01 yesterday.
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