BTIG’s Mark Palmer believes the 9 percent rally in H & R Block Inc
Palmer downgraded the rating on the company from Neutral to Sell, with a price target of $18.
Simplification Of Tax Process
The analyst cautioned that Trump had, in August 2015, said “it would be a dream of mine to put H&R Block right out of business” with the
Although Palmer acknowledged a lot of what had been said during the campaign might not be translated into policy, with the Republicans set to take control of both Houses of Congress and the White House, “the likelihood of the enactment of legislation that would simplify tax filing in a manner that could reduce the need for HRB’s tax preparation services has increased significantly.”
The analyst also pointed out that in April 2016, Sen. Elizabeth Warren had introduced the
“In particular, we believe the ‘Better Way for Tax Reform’ unveiled by Republicans on the House Ways and Means Committee last June represents a threat to HRB’s business insofar as it includes a proposal for the complex tax forms currently in use to be replaced with a postcard that has just 14 lines to fill out,” Palmer stated.
The analyst believes, at the very least, simplification of the process by the
Image Credit: By Michael Rivera (Own work) [CC BY-SA 3.0], via
|Nov 2016||BTIG Research||Downgrades||Neutral||Sell|
|Nov 2016||Morgan Stanley||Downgrades||Overweight||Equal-Weight|
|Aug 2016||BMO Capital||Maintains||Market Perform|
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