UPDATE: Credit Suisse Reiterates On H&R Block Following Analyst Day

In a report published Wednesday, Credit Suisse analyst Anjaneya Singh reiterated an Outperform rating on

, but lowered the price target from $38.00 to $37.00. In the report, Credit Suisse noted, “We adjust our estimates per guidance and commentary. Our FY15 estimate goes to $1.70 (from $1.89), and our FY16 estimate goes to $2.03 (from $2.06). We accordingly reduce our TP to $37, but reiterate O/P. HRB guided FY15 EBITDA margins to ~30%, lower than the ~31% in FY14. HRB cited increased compensation/benefits and training as drivers (we expect these impacts to moderate over time). Capex was guided to ~5% of FY revenue, and D&A was guided to $160-170mm. HRB also raised the lower end of their long-term EBITDA guide to 28-32% vs. prior 27-32%.” H&R Block closed on Tuesday at $32.34.