H&R Block: Buy Recommendation with Strong Growth Potential and Attractive Valuation

Barrington analyst Alexander Paris reiterated a Buy rating on H&R Block (HRB – Research Report) today and set a price target of $70.00.

Alexander Paris has given his Buy rating due to a combination of factors including H&R Block’s fiscal year 2025 guidance and its strong financial position. The company has reaffirmed its revenue and earnings guidance for the year, indicating a projected revenue growth of 2-4% and an EBITDA increase of 1-6%. This positive outlook supports the confidence in the company’s ability to sustain financial growth.
Additionally, H&R Block’s current valuation appears attractive as the stock is trading at a discount compared to both its historical averages and its industry peers. The company’s substantial dividend yield of 2.8%, coupled with an aggressive share repurchase program, further enhances its appeal to investors. Considering these factors, Paris maintains an OUTPERFORM rating with a price target of $70, suggesting a potential upside of nearly 30% from current levels.