Morgan Stanley Downgrades H&R Block to "Underweight" (HRB)

Morgan Stanley Downgrades H&R Block to “Underweight” (HRB)

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On Monday analysts at Morgan Stanley downgraded H&R Block, Inc. (HRB) as a recent stock price run up and IRS issues creates an unattractive outlook for the tax prep specialist.

The analysts downgraded HRB from “Equal-Weight” to “Underweight.” The firm sees shares reaching $17, a -15% downside to Friday’s closing price of $19.98.

H&R Block shares were down 41 cents, or -2.05%, during premarket trading on Monday. The stock is up +21.83% over the past year.

The Bottom Line
Shares of H&R Block (HRB) have a 4.00% dividend yield, based on Friday’s closing stock price of 19.98. The stock has technical support in the $17-$18 price area. If the shares can firm up, we see overhead resistance around the $21-$22 price levels.

H&R Block, Inc. (HRB) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.