UPDATE: Wedbush Initiates H&R Block with Outperform on Expected Solid Shareholder Returns

In a report published Wednesday, Wedbush analyst Gil Luria initiated coverage on H&R Block HRB with an Outperform rating and $33.00 price target. In the report, Luria noted, “We believe H&R Block will maintain solid shareholder returns based on a strong position in the assisted and online tax preparation markets. Incremental potential comes from higher revenue per filing based on the implementation of the Affordable Care Act and realization of the potential of the reloadable prepaid business. We are therefore initiating with an OUTPERFORM rating and $33 price target. Pure non-cyclical, post-turnaround business generates a nearly 3% dividend yield and the company has a propensity to buy back shares with its strong cash flow (19% over last three years).” H&R Block closed on Tuesday at $28.30.