H&R Block (HRB – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Kash Rangan from Goldman Sachs remains neutral on the stock and has a $34.00 price target.
Kash Rangan’s Sell rating for H&R Block is based on a variety of competitive challenges the company is facing. Notably, the aggressive moves by Intuit’s TurboTax in both the Do-It-Yourself (DIY) and assisted tax preparation markets are expected to significantly impact H&R Block’s client volumes. Rangan points out that Intuit’s new focus on assisted tax preparation, particularly with their TurboTax Live offering, is likely to divert customers away from H&R Block’s services.
Moreover, Rangan anticipates that H&R Block will face additional difficulties due to independent competitors who provide tax assistance at a lower cost. The ongoing trend of consumers shifting from assisted services to DIY tax preparation methods also plays a role in the Sell recommendation. Furthermore, the potential expansion of the free IRS Direct File program and the wider implementation of generative AI technology by H&R Block’s competitors are seen as future obstacles that could further erode the company’s market position.
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H&R Block (HRB) Company Description:
H&R Block, Inc. engages in the provision of tax preparation and other services. It offers assisted and do-it-yourself tax return preparation solutions through multiple channels and distribute the H&R block-branded financial products and services, including those of its financial partners, to the general public primarily in the United States, Canada, and Australia. The company was founded by Henry W. Bloch and Richard A. Bloch on January 25, 1955 and is headquartered in Kansas City, MO.
Read More on HRB:
- H&R Block’s Latest Brand Campaign Encourages Hardworking Americans to Switch to the Winning Team by Showing Why ‘It’s Better With Block’
- New H&R Block AI Tax Assist Provides DIY Tax Filers Instant, Unlimited Help with No Extra Fees or Upgrade Required for Live Tax Pro Assistance
- H&R Block introduces H&R Block AI Tax Assist
- H&R Block CFO sells $2.21M in common stock
- H&R Block Celebrates Top Performing Franchisees for Their Bold Commitment to Client Experience and Company Transformation
