In a report released today, Youssef Squali from SunTrust Robinson upgraded frontdoor inc (FTDR) to Buy, with a price target of $45. The company’s shares opened today at $42.86.
Squali wrote:
“We hosted at our 6th annual internet and digital media conference for a fireside chat. Large Opportunity. Frontdoor believes it has established itself as the largest company in the home warranty services space, getting to 4x the size of its next closest competitor. Of the 120M home occupied homes in the United States, only 5M are under a home service plan. While the company is looking to grow the number of homes under warranty, it is also looking for its upcoming on- demand product to target the homes that do not have a warranty plan. Upgrading Infrastructure. One of CEO Rex Tibbens’ priorities has been upgrading the existing infrastructure to modernize the company after years of under-investment by its prior owner, ServiceMaster (SERV, NR).”
According to TipRanks.com, Squali is a top 100 analyst with an average return of 23.2% and a 70.6% success rate. Squali covers the Technology sector, focusing on stocks such as ANGI Homeservices Inc, IAC/InterActiveCorp, and Match Group Inc.
Currently, the analyst consensus on frontdoor inc is a Strong Buy with an average price target of $41.50, representing a -3.2% downside. In a report issued on May 8, Oppenheimer also maintained a Buy rating on the stock with a $40 price target.
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Based on frontdoor inc’s latest earnings release for the quarter ending March 31, the company reported a quarterly revenue of $271 million and net profit of $13 million. In comparison, last year the company earned revenue of $346 million and had a net profit of $53 million.
Based on the recent corporate insider activity of 14 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of FTDR in relation to earlier this year.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
frontdoor, Inc. engages in the provision of home service plans. Its service focuses on water heaters, garbage disposals, doorbells. smoke detectors, ceiling fans, central vacuums, refrigerators, dishwashers and trash compactors. The company was founded on January 2, 2018 and is headquartered in Memphis, TN.
