H&R Block (HRB) Stands Firm on Pricing, BTIG Reiterates Sell

BTIG analyst Mark Palmer reiterated a Sell rating and $19.00 price target on H&R Block (NYSE: HRB) after 1Q20 operating results were largely a non-event. Q1 typically represents less than 5% of the company’s annual revenues and less than 15% of its annual expenses. The key takeaway is that management does not intend to use price decreases as a driver of demand for assisted tax preparation services as it did during the FY19 season.

The analyst stated "We believe management’s decision to have HRB stand pat on assisted tax prep pricing during the FY20 tax season removes one of the few levers that the company could have used to offset what we believe is likely to be an acceleration of the shift from assisted to do-it-yourself (DIY) arising from the structural change in the tax prep landscape from U.S. tax reform, which doubled the standard deduction and thereby reduced the proportion of filers who need to itemize".

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 $26.88 yesterday.

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