Oppenheimer Discusses H&R Block (HRB)

Oppenheimer & Co. is out with a research note on tax season, and discusses H&R Block

. In a note to clients, Oppenheimer writes, "Following two tax seasons of poor performance (2009/2010), HRB has bounced back with expected FY11 single digit storefront volume growth resulting from strategic pricing, successful marketing, a slightly stronger than anticipated economy/labor market, and capitalization upon weakened mom & pop storefront competitors. Furthermore, it has finally made inroads with regard to garnering more digital self-prep users (+13% y/y through 3/31/11 YTD). Though lacking the strong overall growth profile of TurboTax, FY11 is the closest HRB has come in years. Notably, it is well positioned to perpetuate its momentum into FY12. We're maintaining our Perform given its stock may be due for a breather. However, we're encouraged by HRB's potential to gain incremental share from its smaller, weakened storefront peers again in FY12." Shares of HRB lost 31 cents yesterday to close at $17.92, a loss of 1.76%.