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Standpoint Research Downgrades H & R Block (HRB) to Hold

April 4, 2011 3:08 PM EDT
Get Alerts HRB Hot Sheet
Price: $48.66 --0%

Rating Summary:
    6 Buy, 7 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 9 | Down: 6 | New: 8
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Standpoint Research downgraded H & R Block (NYSE: HRB) from Buy to Hold.

The firm states, "Our February 15, 2011 recommendation HRB may no longer be rising on valuation, but because of a short squeeze that may or may not have already played itself out. In my opinion, even though there are still ~20,000,000 shares short, we are nearing the point where new short sellers and profit takers will offset any short covering. HRB shares are up > 33% for us in a flat market and we can no longer leave our highest recommendation attached to this name. See line 12 in the table below."

"HRB shares now fairly valued at 9X peak earnings from 2003-2004 and 11X estimates for next year. Although the shares are still trading 10%-20% below our price target for 2012, relative strength is nearing 90 and that is usually a sign of a near-term over-bought condition."


For more ratings news on H & R Block click here and for the rating history of H & R Block click here.

Shares of H & R Block closed at $17.44 yesterday.


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