UPDATE: Bank of America Reiterates Neutral Rating, Raises PT on Blackhawk Network Holdings on Uncertainty About Holiday Season

In a report published Thursday, Bank of America analyst Sara Gubins reiterated a Neutral rating on

, and raised the price target from $32.00 to $38.00. In the report, Bank of America noted, “Ex $2.1mn pre-tax benefit for early contract amendments, 3Q14 adj. EPS of $0.06 was $0.03 above our forecast & consensus. The beat was driven by higher than expected load value & margins. We have maintained 4Q14 EPS estimates, putting us at the high end of the 2014 guidance range (HAWK expects to be near high end of range). In 2015, we forecast 26% load value growth & 9.9% adj. EBITDA margins (+120bp YoY), yielding adj. EPS of $1.64 (+32% YoY). Pro forma for the Parago acquisition and tax benefit (associated with Cerberus' buyout of Safeway), we forecast 2014E EPS of $1.59 (high end of guidance range) and 2015E of $2.30. We will update our model following these events.” Blackhawk Network Holdings closed on Wednesday at $35.36.