UPDATE: Compass Point Downgrades H&R Block to Neutral on Risk/Reward
Compass Point reduced its rating on H&R Block (NYSE: HRB) from Buy to Neutral but raised its price target from $18.50 to $19.50.
Compass Point noted, "Fundamentally, we believe the business has stabilized and see several potential tailwinds that should bolster earnings over the next several years. We continue to see value in the company, and are increasing our price target $1 to $19.50 as a result. That said, while we believe there is upside in the stock, the odds of a choppy tax season, the unknown resolution of the bank, and the potential for put-back headlines to re-emerge keep us from continuing to recommend shares at this level."
H&R Block closed at $18.80 on Tuesday.
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