UPDATE: Wedbush Initiates Blackhawk Network Holdings with Underperform on Potential Disruption by Mobile Wallets

In a report published Tuesday, Wedbush analyst Gil Luria initiated coverage on Blackhawk Network Holdings (NASDAQ: HAWK) with an Underperform rating and $19.00 price target.

In the report, Luria noted, “We believe HAWK will benefit from the growth of the stored value category in the short-to-medium term, especially as it bundles loyalty programs for its distributor partners. However, we expect that stored value transmission and loyalty management will become the first 'killer app' for upcoming mobile wallets, thus eliminating much of HAWK's value. HAWK began trading on April 19 with an IPO price of $23.”

Blackhawk Network Holdings closed on Monday at $26.43.