UPDATE: Bank of America Reiterates Neutral Rating, Lowers PT on Blackhawk Network Holdings on Near-Term Prospects, Medium-Term Risks

In a report published Friday, Bank of America analyst Sara Gubins reiterated a Neutral rating on Blackhawk Network Holdings HAWK, but lowered the price target from $28.00 to $25.00. In the report, Bank of America noted, “We view Blackhawk as the clear leader in the $16bn closed-loop third-party gift card market. Blackhawk has strong near-term prospects driven by strong secular trends and significant same store growth potential. However, we argue these are balanced by medium-term risks - valuation, uncertainty around longer term growth prospects, and limited margin expansion potential.” Blackhawk Network Holdings closed on Thursday at $22.41.