HAWK

Blackhawk Network Holdings Inc

TMT, Finance/Real Estate


Presented:12/04/2017
Price:$35.55
Cap:$2.02B
Current Price:$45.15
Cap:$2.58B

Presented

Date12/04/2017
Price$35.55
Market Cap$2.02B
Ent Value$2.90B
P/E RatioN/A
Book Value$14.51
Div Yield0%
Shares O/S56.71M
Ave Daily Vol905,663
Short Int7.14%

Current

Price$45.15
Market Cap$2.58B
Blackhawk Network Holdings, Inc. engages in the provision of payment network utilizing proprietary technology to offer to consumers and businesses a broad range of prepaid cards in physical and electronic forms, as well as prepaid products, payment services, and incentives solutions. It operates through the following segments: U.S. Retail, International, and Incentives & Rewards. The U.S. Retail segment refers to the sale of prepaid cards to consumers in the U.S. through its physical retail distribution partners as through its various online distribution channels. The International segment is comprised of the operations of Retailo AG and its subsidiaries, the Grass Roots Group Holding Limited and its subsidiaries, new retail distribution partners, new prepaid products and content, and third-party online sales. The Incentives & Rewards segment is primarily the acquisition of InteliSpend Prepaid Solutions, LLC and its subsidiaries, Parago, Inc and its subsidiaries, Achievers Corp. and its subsidiaries, and 888extramoney.com LLC. The company was founded in 2001 and is headquartered in Pleasanton, CA.

Publicly traded companies mentioned herein: Blackhawk Network Holdings Inc (HAWK), Kroger Co (KR)

Highlights

The presenter is long shares of Blackhawk Networks (HAWK), a major operator of gift cards and prepaid payments processing. He sees a buying opportunity following recent weakness in the stock, which he attributes to transitional issues that has led to temporary underearning. He believes HAWK is set to see 10% top-line growth next year with some level of margin expansion. Should the presenter’s thesis prove correct and the market credits HAWK with a multiple closer to what other payments players trade at, HAWK shares could see 40% - 50% upside over the next 18 – 24 months.

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Idea Discussion

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