SunTrust Banks Reaffirms Buy Rating for Frontdoor (NASDAQ:FTDR)

Frontdoor (NASDAQ:FTDR)‘s stock had its “buy” rating reaffirmed by research analysts at SunTrust Banks in a research note issued on Tuesday, May 7th, The Fly reports. They presently have a $45.00 price target on the stock, up from their prior price target of $40.00. SunTrust Banks’ price target indicates a potential upside of 11.91% from the stock’s current price. SunTrust Banks also issued estimates for Frontdoor’s Q2 2019 earnings at $0.49 EPS, Q3 2019 earnings at $0.54 EPS, Q4 2019 earnings at $0.25 EPS, FY2019 earnings at $1.47 EPS, FY2021 earnings at $2.12 EPS, FY2022 earnings at $2.54 EPS and FY2023 earnings at $2.98 EPS.

The analysts wrote, “We maintain a Buy rating and $40 PT heading into FTDR’s 1Q19 print on 5/8. We initiated in March with a positive bias on FTDR based on its industry leading position in the home service plans vertical, which it should be able to leverage to continue to scale its core business as well as develop new products. These include an on-demand offering, which should better position the company for growth as it adapts to shifting consumer habits. We note that 75% revenue retention from its subscription model provides strong visibility into the top and bottom lines, further supporting the stock.””

A number of other research analysts have also recently issued reports on FTDR. Zacks Investment Research raised Frontdoor from a “strong sell” rating to a “hold” rating in a research note on Monday, February 11th. Buckingham Research upped their price objective on Frontdoor from $37.00 to $44.00 and gave the stock a “buy” rating in a research report on Thursday, March 14th. JPMorgan Chase & Co. began coverage on Frontdoor in a research report on Monday, March 25th. They set an “overweight” rating and a $41.00 price objective for the company. Wells Fargo & Co started coverage on Frontdoor in a research report on Monday, March 25th. They set an “outperform” rating for the company. Finally, William Blair started coverage on Frontdoor in a report on Tuesday, March 26th. They set an “outperform” rating and a $32.40 target price on the stock. One equities research analyst has rated the stock with a sell rating, three have issued a hold rating and twelve have issued a buy rating to the stock. Frontdoor currently has a consensus rating of “Buy” and a consensus price target of $43.41.

NASDAQ FTDR traded down $0.74 on Tuesday, reaching $40.21. The company had a trading volume of 627,400 shares, compared to its average volume of 617,934. The company has a market capitalization of $3.45 billion and a PE ratio of 22.72. Frontdoor has a 52 week low of $20.66 and a 52 week high of $49.92.

Frontdoor (NASDAQ:FTDR) last posted its earnings results on Wednesday, May 8th. The company reported $0.19 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.12 by $0.07. The business had revenue of $271.00 million during the quarter, compared to analyst estimates of $268.69 million. During the same period in the previous year, the firm posted $0.26 earnings per share. The firm’s revenue was up 9.7% on a year-over-year basis. On average, equities research analysts predict that Frontdoor will post 1.49 EPS for the current year.

In other news, Director Peter L. Cella bought 7,000 shares of the stock in a transaction dated Friday, May 10th. The shares were bought at an average price of $38.47 per share, for a total transaction of $269,290.00. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.09% of the stock is currently owned by company insiders.

Hedge funds and other institutional investors have recently made changes to their positions in the company. Marshall Wace North America L.P. acquired a new stake in shares of Frontdoor during the 1st quarter valued at $9,377,000. Advisory Services Network LLC acquired a new stake in shares of Frontdoor during the 1st quarter valued at $854,000. Metropolitan Life Insurance Co NY acquired a new stake in shares of Frontdoor during the 1st quarter valued at $219,000. Vulcan Value Partners LLC acquired a new stake in shares of Frontdoor during the 1st quarter valued at $42,265,000. Finally, Jane Street Group LLC acquired a new stake in shares of Frontdoor during the 1st quarter valued at $536,000. Institutional investors own 95.66% of the company’s stock.

Frontdoor Company Profile

frontdoor, inc. provides home service plans in the United States. The company's home service plans cover the repair or replacement of components of up to 21 household systems and appliances, including electrical, plumbing, water heaters, refrigerators, dishwashers, and ranges/ovens/cooktops, as well as central heating, ventilation and air conditioning systems.

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Analyst Recommendations for Frontdoor (NASDAQ:FTDR)

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