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Analyst Mark Palmer says the 9% post-election rally in H&R Block (NYSE:HRB) reflects a complacency from investors who may be forgetting Trump's August 2015 promise to put the company out of business by simplifying the tax filing process.
- Even if one acknowledges this as being little more than campaign trail rhetoric, says Palmer, given Republican control of Congress to go along with President Trump, it's not out the realm to believe at least some tax simplification is coming.
- He also notes leading voices on the Left - Senators Sanders and Warren - this year put forth a "Tax Simplification" act.
- Palmer's $18 price target is based on 9.5x expected 2018 EPS of $1.88.
- Shares are down 2.6% premarket to $23.35.