UPDATE: Morgan Stanley Upgrades H&R Block to Overweight, Raises PT on GoHealth Opportunity

In a report published Tuesday, Morgan Stanley analyst Thomas Allen upgraded the rating on H&R Block HRB from Equal-Weight to Overweight, and raised the price target from $25.00 to $33.00. In the report, Morgan Stanley noted, “While HRB has traded off over the past few months on concerns ACA will be delayed or de-funded, we have warmed up to the stock, especially after HRB partnered w/ GoHealth. We've adjusted our ests to reflect our latest thinking on ACA / buybacks, resulting in F15 EPS of $2.20, 15x multiple, $33 PT.” H&R Block closed on Monday at $26.66.