Trump’s victory in the U.S. presidential election is a negative for H & R Block Inc
Although H&R Block’s volume growth would likely accelerate in FY 2017, the stock currently reflects “a more balanced” risk to return ratio, Allen mentioned.
“We believe that the
H&R Block’s new Refund Advance product is a new loan product that enables early season filers to get their refunds quickly. While such products offered a tailwind initially, the benefit has diminished since the product has become more commonplace, Allen stated. He pointed out further that these loans are not priced as margin drivers, which spells incremental risks for H&R Block’s margins.
At last check, H&R Block was down 6.99 percent at $22.23.
Image Credit: By Michael Rivera (Own work) [CC BY-SA 3.0 ] via
|Nov 2016||Morgan Stanley||Downgrades||Overweight||Equal-Weight|
|Aug 2016||BMO Capital||Maintains||Market Perform|
|Aug 2016||Macquarie||Initiates Coverage on||Outperform|
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