In a report released yesterday, Ian Zaffino from Oppenheimer maintained a Buy rating on Servicemaster Global Holdings (NYSE: SERV), with a price target of $65. The company’s shares closed yesterday at $58.19.
Zaffino observed:
“We were highly impressed by frontdoor’s presentation and growth aspirations. The core business should enjoy stable, HSD revenue growth, while the new, non- subscription/non-warranty offerings will be entirely incremental. Through technology and its network of 15K contractors, the company intends to expand deeper into the $400B home services market (it presently serves just 27% of the market). New services will go beyond traditional fix/repair/replace work, and include appliance maintenance, handyman services, landscaping and smart home system installations. We continue to believe FTDR is worth $24 to SERV (or $38/share on FTDR’s new share count). Maintain Outperform.”
According to TipRanks.com, Zaffino is a 4-star analyst with an average return of 3.2% and a 54.7% success rate. Zaffino covers the Services sector, focusing on stocks such as Wyndham Destinations Inc, Peak Resorts, and CDK Global.
Servicemaster Global Holdings has an analyst consensus of Strong Buy, with a price target consensus of $68.33, implying a 17.4% upside from current levels. In a report issued on September 11, William Blair also maintained a Buy rating on the stock.
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Based on Servicemaster Global Holdings’ latest earnings release for the quarter ending June 30, the company reported a quarterly revenue of $874 million and net profit of $96 million. In comparison, last year the company earned revenue of $807 million and had a net profit of $85 million.
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ServiceMaster Global Holdings, Inc. engages in the provision of residential and commercial services. It operates through the following segments: Terminix, American Home Shield, and Franchise Services Group. The Terminix segment provides termite and pest control services to residential and commercial customers; as well as distributes pest control products.
