NEW YORK (TheStreet) -- Shares of H&R Block (HRB) closed trading down 5.19% to $30.30 after Credit Suisse earlier downgraded the company to "neutral" from "outperform," and lowered its price target to $35 from $37.
The firm reduced their estimate of 2016 earnings per share to $1.84 from $2, and believe that the capital return opportunity is now embedded in the stock, according to the analyst note.
"We are reducing our top line growth expectations slightly, and taking a more conservative view on repurchases until the bank deal is actually approved," analysts at Credit Suisse said.
On Monday, the company announced its earnings results for the 2015 fiscal year that ended April 30 with revenue of $3.08 billion, up 1.8% from $3.02 billion in fiscal 2014.
Net income for the 12-month period fell to $473.7 million, or $1.71 per share, down from $475.2 million, or $1.72 per share a year earlier.
H&R Block provides tax preparation and related services to the general public primarily in the U.S., Canada, and Australia.
Separately, TheStreet Ratings team rates BLOCK H & R INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate BLOCK H & R INC (HRB) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins, increase in stock price during the past year and notable return on equity. We feel its strengths outweigh the fact that the company shows weak operating cash flow."