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H&R Block gives back yesterday's gains; BTIG reiterates bearish outlook

Published 12/07/2017, 10:36 AM
© Reuters.  H&R Block gives back yesterday's gains; BTIG reiterates bearish outlook
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  • The company's strong guidance for the rest of fiscal 2018 doesn't jibe with what's becoming an even tougher do-it-yourself tax prep market, says BTIG's Mark Palmer, reiterating his Sell rating and $19 price target.
  • Palmer notes H&R Block's (NYSE:HRB) DIY segment had 3.5% volume growth in fiscal 2017, but that came mostly thanks to a 10% price cut. Now, Intuit (NASDAQ:INTU) is promising to be aggressive on prices in 2018, and Credit Karma is seeing speedy uptake for its free service.
  • After a 10%-plus rise yesterday, shares are down 8.2% today to $26.61. INTU is off 0.6%.
  • Previously: H&R Block rallies on changing tax code (Dec. 7)
  • Now read: Ulta Beauty: The Picture Is Still Not Beautiful


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