BTIG Sticks to Their Sell Rating for H&R Block

BTIG analyst Mark Palmer reiterated a Sell rating on H&R Block (NYSE: HRB) yesterday and set a price target of $19. The company’s shares closed yesterday at $24.07, close to its 52-week low of $23.28.

Palmer said:

“Block (HRB) have declined by more than 18% since management on June 12 unveiled FY19 financial guidance that included a year-over-year revenue decline they said would be due to changes in the company’s pricing structure that would “address the impact of the recent tax legislation.” The impact to which they were referring stemmed from the anticipated decision by some of HRB’s assisted tax preparation customers to opt to use the standard deduction rather than to use the company’s services. HRB’s reduced guidance demonstrated that the simplification arising from tax reform would have the negative effect on HRB’s operating performance that we had anticipated when we downgraded the stock to Sell in November 2016.”

According to TipRanks.com, Palmer is a 5-star analyst with an average return of 11.3% and a 64.9% success rate. Palmer covers the Financial sector, focusing on stocks such as Santander Consumer USA, Assured Guaranty Ltd, and Synchrony Financial.

H&R Block has an analyst consensus of Hold, with a price target consensus of $25.20.

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The company has a one-year high of $31.80 and a one-year low of $23.28. Currently, H&R Block has an average volume of 3.15M.

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H&R Block, Inc. engages in the provision of tax preparation and other services. It offers assisted and do-it-yourself tax return preparation solutions through multiple channels and distribute the H&R block-branded financial products and services, including those of its financial partners, to the general public primarily in the United States, Canada, and Australia. The company was founded by Henry W. Bloch and Richard A. Bloch on January 25, 1955 and is headquartered in Kansas City, MO.