UPDATE: Piper Jaffray Initiates Blackhawk Network with Overweight on Gift/Prepaid Card Growth

In a report published Tuesday, Piper Jaffray analyst Michael J. Grondahl initiated coverage on Blackhawk Network Holdings

with an Overweight rating and $27.50 price target. In the report, Grondahl noted, “We believe HAWK represents a compelling way to play the growth of prepaid and gift cards. HAWK's extensive distribution channels and content partners position it well for growth. Furthermore, additional penetration of best practices and loyalty plans among distributors represents a significant opportunity going forward. We believe HAWK can grow revenue in the 20%+ range and its capital-light financial model generates ~22% + long-term adj. EBITDA margins.” Blackhawk Network Holdings closed on Monday at $24.81.