Piper Jaffray Cuts Price Target on H&R Block (HRB) to $28 Following 1Q
- Top 10 News for 10/17 - 10/21: Merger Rumors Abound; CEOs Depart; Tesla Kicks Autopilot Up A Notch
- Wall Street ends little changed; Microsoft hits record
- AT&T (T) in Advanced Talks to Acquire Time Warner (TWX) - DJ
- Rockwell Automation (ROK) Said to Attract Takeover Interest from Schneider Electric - Source
- British American Tobacco Offers to Acquire Remaining Shares of Reynolds American (RAI) for $56.50/Share
Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.
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."
Shares of H&R Block closed at $24.20 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Imperial Capital Raises Price Target on Proofpoint (PFPT) Following Strong 3Q Results
- Jefferies Cuts Price Target on Boston Beer Co. (SAM) to $140 Following Weak 3Q
- Stifel Upgrades PayPal (PYPL) to Buy Following 'Solid' Q3 Results
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesPiper Jaffray, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!