Wedbush Upgrades Blackhawk, Says Market Pricing in More Realistic Trajectory

Blackhawk Network Holdings HAWK was downgraded from Neutral to Underperform by Wedbush Friday morning. The firm maintains an $18 price target. Gil Luria, analyst at Wedbush, sees the 20 percent drop on Thursday as the market “pricing in more realistic trajectory” for organic growth of 14-18 percent. Luria's $18 target is “based on a 14x multiple on 2014 adjusted EPS, a slight discount to market multiple based on faster short-term growth offset by low visibility in the long term.” Shares are up 1.9 percent to $22.85; the stock closed at $28.05 on Wednesday before fourth quarter earnings were release.
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