SunTrust Banks Begins Coverage on Frontdoor (FTDR)

SunTrust Banks assumed coverage on shares of Frontdoor (NASDAQ:FTDR) in a research report report published on Thursday, March 28th, reports. The firm issued a buy rating and a $40.00 price target on the stock.

“We expect FTDR to sustain high single digit growth for revs over time with potential for some upside (FY18 revs growth at +9%) for the foreseeable future. All three revenue segments (Renewals, DTC) have grown through volume/pricing, and we expect the recent price hike to positively impact 2019 results. Improvement in GM from better procurement/scale, and in opex from back-end integration/ more efficient customer care/move to cloud should drive double digit growth in Adj. EBITDA/EPS over the LT. We view mgt’s target of 50% GM/20%+ Adj. EBITDA margin within the next 2-3 years as achievable. in 2H19. FTDR products have been around since 1971, yet only recently has mgt started to aggressively move online.”,” the firm’s analyst wrote.

FTDR has been the subject of a number of other research reports. Wells Fargo & Co started coverage on Frontdoor in a research note on Monday, March 25th. They set an outperform rating for the company. Zacks Investment Research upgraded Frontdoor from a strong sell rating to a hold rating in a research note on Monday, February 11th. ValuEngine upgraded Frontdoor from a sell rating to a hold rating in a research note on Saturday, January 5th. Buckingham Research started coverage on Frontdoor in a research note on Friday, November 30th. They issued a buy rating and a $29.00 target price on the stock. Finally, Oppenheimer set a $40.00 target price on Frontdoor and gave the stock a buy rating in a research note on Thursday, December 13th. Four research analysts have rated the stock with a hold rating and ten have assigned a buy rating to the company. The stock has an average rating of Buy and a consensus target price of $42.24.

Shares of FTDR traded down $0.22 during trading hours on Thursday, hitting $34.01. The stock had a trading volume of 311,939 shares, compared to its average volume of 562,782. The company has a market cap of $2.88 billion and a PE ratio of 19.21. Frontdoor has a 1-year low of $20.66 and a 1-year high of $49.92.

Frontdoor (NASDAQ:FTDR) last released its quarterly earnings results on Wednesday, February 27th. The company reported $0.23 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.08 by $0.15. The company had revenue of $279.00 million for the quarter, compared to analyst estimates of $277.87 million. Frontdoor’s revenue for the quarter was up 8.6% on a year-over-year basis. During the same quarter last year, the firm posted $0.36 EPS. Equities research analysts predict that Frontdoor will post 1.46 earnings per share for the current fiscal year.

About Frontdoor

frontdoor, inc. provides home service plans to homeowners under the American Home Shield, HSA, Landmark, and OneGuard brands 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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