Compass Point Downgrades H&R Block (HRB) to Neutral on Balanced Risk/Reward - InvestingChannel

Compass Point Downgrades H&R Block (HRB) to Neutral on Balanced Risk/Reward

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Rating Summary:

3 Buy, 3 Hold, 0 Sell

Rating Trend: Up

Today’s Overall Ratings:

Compass Point downgraded H&R Block (NYSE: HRB) from Buy to Neutral with a price target of $19.50 (from $18.50), citing a more balanced risk/reward.

The firm comments, “We are downgrading our rating from Buy to Neutral as we believe the risk/reward on the stock is more balanced at the current level. Fundamentally, we believe the business has stabilized and see several potential tailwinds that should bolster earnings over the next several years. We continue to see value in the company, and are increasing our price target $1 to $19.50 as a result. That said, while we believe there is upside in the stock, the odds of a choppy tax season, the unknown resolution of the bank, and the potential for put-back headlines to re-emerge keep us from continuing to recommend shares at this level. We would be more constructive on shares at a lower level and believe this is broadly consistent with management’s actions as buyback activity has been focused on the sub $15 level over the past several years.”

For an analyst ratings summary and ratings history on H&R Block click here. For more ratings news on H&R Block click here.

Shares of H&R Block closed at $19.19 yesterday, with a 52 week range of $14.35-$19.32.

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