Piper Jaffray Cuts Price Target on H&R Block (HRB) to $28 Following 1Q

August 31, 2016 8:11 AM EDT
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Price: $23.66 -0.67%

Rating Summary:
    3 Buy, 9 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 13 | Down: 22 | New: 54
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Piper Jaffray maintained an Overweight rating on H&R Block (NYSE: HRB), and cut the price target to $28.00 (from $29.00), following the company's 1Q earnings report. Revenue of $125M and EPS of ($0.55) were modestly below expectations of $129M and ($0.53), respectively In connection with F1Q results, management remains focused on "arresting" assisted and digital DIY tax volume declines, likely using pricing as a key tactical lever.

Analyst George Tong commented, "While H&R Block's F1Q print itself was a relative non-event and commentary remained limited on strategic changes in the 2017 tax season, we sense management will take appropriate measures with pricing and promotions to stem declines in assisted and digital DIY tax volumes, particularly in the early tax season. With strong execution, we believe this strategy can drive a positive inflection in revenue growth in F2017, along with margin expansion from cost actions already completed to-date. Accordingly, we remain buyers of HRB, particularly with shares down ~5% in the after-market."

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 $24.20 yesterday.

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