UPDATE: Bank of America Initiates Coverage on Blackhawk With a Neutral Rating Based on Limited Margin Expansion Potential

Analysts at Bank of America initiated coverage on Blackhawk (HAWK) with a neutral rating with a target price of $27. Over time, analysts “expect growth to slow, and see limited margin expansion potential due to rising distributor partner commissions.” In the analysts' view, current valuation largely reflects HAWK's (20x 2014E EPS) near-term growth potential. Shares are trading up in the premarket at $24.96.