Markets & Finance

Barrington Cuts H&R Block to 'Market Perform'


Barrington Research lowers H&R Block (HRB) to market perform from outperform.

Analyst Alex Paris says he downgraded given the stock's strong performance over the past six months, as shares approached his $60 target at Tuesday's close. He thinks this is going to be a tougher tax season, given the difficult economy and employment situation. He notes the Internal Revenue Service is expecting a 0.5% growth in returns filed this year.

Paris expects the mortgage business to hold its own in a rising interest-rate environment (management continues to expect origination growth), and thinks higher rates will negatively impact its profitability despite being factored into managements and his own estimates. Paris upped the $3.75 fiscal 2004 (Apr.) earnings per share estimate to $3.85.


Burger King's Young Buns
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

Sponsored Financial Commentaries

Sponsored Links

Buy a link now!

 
blog comments powered by Disqus