UPDATE: Citigroup Upgrades Blackhawk Network Holdings to Buy, Raises PT on Multiple Positive Factors

In a report published Tuesday, Citigroup analyst Ashwin Shirvaikar upgraded the rating on

from Neutral to Buy, and raised the price target from $25.00 to $27.00. In the report, Citigroup noted, “We are upgrading HAWK to Buy from Neutral and raising our price target to $27 from $25. There are several reasons for our upgrade, including: (1) recent underperformance creates a good opportunity given valuation vs. HAWK's premium growth; (2) we like the recent acquisitions of InteliSpend and Retailo; (3) external data suggest a recovery in spending in HAWK's key grocery channel; (4) calendar shifts and weather effects may be helpful during the key holiday season for gift card sales; and (5) recent survey data suggests interest and buying intention for gift cards remain solid heading into the holidays. Buy HAWK.” Blackhawk Network Holdings closed on Monday at $22.48.