Oppenheimer: H&R Block's 'Data Net Unappealing'

In a report published Wednesday, Oppenheimer analysts maintained an Outperform rating on

, with a price target of $36. Although the company reported its F3Q15 adjusted EPS ahead of the estimates and the consensus, this figure was benefited by an earlier tax season start which added extra filing days to the quarter. Looking at the YTD filing volume (till February 28, 2015) was "the key focus metric absent meaningful bank deal commentary (no update...still waiting)," the report mentioned. "HRB's 2/28/15 YTD total volume was unappealing on slow storefront start/competitive DIY pricing & marketing/fraud dynamics/certain HRB discounting discontinued/ACA early season disruption. However, we anticipate the trend to mitigate in the back half + monetization/mix/attach revenue contribution. Relatively favorable was HRB's overall DIY performance in the early season in a dynamic competitive environment," the analysts commented. Much back half work remains for HRB to normalize volume," the analysts said. The adjusted EPS estimates for FY15 and FY16 have been reduced from $1.76 to $1.72 and from $2.22 to $2.20, respectively.