UPDATE: BTIG Research Downgrades H&R Block Following Achievement of Price Target

In a report published Monday, BTIG Research analyst Mark Palmer downgraded the rating on H&R Block HRB from Buy to Neutral, and removed the $31.00 price target.

In the report, BTIG Research noted, “We are downgrading H&R Block (HRB) to NEUTRAL from BUY and removing our $31 price target following the achievement of that level. While we continue to think that HRB could continue to appreciate with the realization of certain catalysts such as the potentially significant increase in tax preparation volumes associated with the implementation of the Patient Protection and Affordable Care Act (the ACA or Obamacare) and the passage of comprehensive immigration reform, we also believe that the upside associated with these catalysts is at least partially baked into the stock at this point. Given that HRB operates in an industry that grows at approximately 1-2% per annum, we believe a meaningful acceleration of its growth would be required to justify a materially above-market multiple. As such, we think the stock's 16.7x 2014E multiple and 14.7x 2015E multiple already reflect a somewhat enhanced growth rate when the drivers of such enhancement remain prospective.”

H&R Block closed on Friday at $31.02.