“Reiterating our Outperform, our PT increases to $27 from $24. Still anticipating 34% y/y FY13E adj. EPS growth primarily on reduced y/y opex/shares, we’re shifting F3Q13E contribution to F4Q13E on the Fiscal Cliff-delayed tax season start. This mid-inning operational/capital restructuring/realignment story has shifted to FY14E on anticipated revenue growth rejuvenation via increased filers/complexity pricing related to Obamacare implementation. Possible increased immigrant volume via the developing Immigration Bill also presents incremental future-year upside potential. These perceived drivers are contributing to a re-rating of HRB from previously depressed levels. Our $27 PT is based on 13.9x our CY13E EPS of $1.94, which is consistent with the market multiple despite HRB’s elevated intermediate-term growth profile (23% FY12-14E CAGR)/3.2% dividend yield.,” the firm’s analyst commented.
A number of other firms have also recently commented on HRB. Analysts at Zacks reiterated a neutral rating on shares of H&R Block in a research note to investors on Thursday, January 31st. They now have a $24.00 price target on the stock. Separately, analysts at Morgan Stanley downgraded shares of H&R Block from an equal weight rating to an underweight rating in a research note to investors on Monday, January 14th. They now have a $17.00 price target on the stock. Finally, analysts at Compass Point downgraded shares of H&R Block from a buy rating to a neutral rating in a research note to investors on Wednesday, December 19th. They now have a $19.50 price target on the stock, up previously from $18.50.
Four analysts have rated the stock with a buy rating, one has given an overweight rating, two have given a hold rating, and one has issued a sell rating to the company. The stock has a consensus rating of overweight and an average target price of $23.75.
H&R Block traded down 1.25% on Friday, hitting $24.785. H&R Block has a 1-year low of $14.35 and a 1-year high of $25.23. The stock’s 50-day moving average is currently $21.72. The company has a market cap of $6.724 billion and a price-to-earnings ratio of 19.34.
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