The Goldman Sachs Group Forecasts Strong Price Appreciation for Frontdoor (NASDAQ:FTDR) Stock

Key Points

• Goldman Sachs raised its Frontdoor price target from $81 to $93 but maintained a neutral rating, implying 7.48% downside from the prior close.
• Analyst sentiment is more positive overall: five analysts rate the stock a Buy and two a Hold, giving it a Moderate Buy consensus and an average price target of $99.80.
• Frontdoor beat quarterly expectations, reporting EPS of $1.81 versus $1.77 expected and revenue of $655 million versus $647.73 million; revenue grew 6% year over year.

Frontdoor (NASDAQ:FTDR - Get Free Report) had its price target raised by stock analysts at The Goldman Sachs Group from $81.00 to $93.00 in a research note issued to investors on Monday, Benzinga reports. The firm currently has a "neutral" rating on the stock. The Goldman Sachs Group's price target points to a potential downside of 7.48% from the stock's previous close.

Other equities research analysts have also issued research reports about the company. Benchmark upped their price objective on Frontdoor from $80.00 to $96.00 and gave the stock a "buy" rating in a research report on Friday, August 7th. Wolfe Research raised shares of Frontdoor to an "outperform" rating in a report on Monday, August 24th. Truist Financial boosted their target price on shares of Frontdoor from $105.00 to $115.00 and gave the company a "buy" rating in a research note on Friday. Oppenheimer increased their price target on shares of Frontdoor from $70.00 to $100.00 and gave the stock an "outperform" rating in a report on Friday, August 7th. Finally, JPMorgan Chase & Co. began coverage on shares of Frontdoor in a research report on Monday, August 24th. They set a "neutral" rating and a $95.00 price target on the stock. Five research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat, Frontdoor has a consensus rating of "Moderate Buy" and an average target price of $99.80.

Frontdoor Stock Performance

FTDR traded up $3.43 during midday trading on Monday, hitting $100.52. 465,775 shares of the company were exchanged, compared to its average volume of 613,848. The company's 50 day simple moving average is $80.90 and its 200 day simple moving average is $70.15. The firm has a market capitalization of $6.93 billion, a price-to-earnings ratio of 25.12 and a beta of 1.60. Frontdoor has a 1-year low of $48.47 and a 1-year high of $103.07. The company has a current ratio of 1.75, a quick ratio of 1.75 and a debt-to-equity ratio of 3.57.

Frontdoor (NASDAQ:FTDR - Get Free Report) last issued its quarterly earnings data on Thursday, November 5th. The company reported $1.81 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.77 by $0.04. The business had revenue of $655.00 million during the quarter, compared to analysts' expectations of $647.73 million. Frontdoor had a return on equity of 124.74% and a net margin of 12.96%. The company's revenue for the quarter was up 6.0% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.58 EPS. As a group, sell-side analysts predict that Frontdoor will post 4.73 earnings per share for the current year.

Institutional Investors Weigh In On Frontdoor

A number of institutional investors have recently added to or reduced their stakes in FTDR. Abel Hall LLC lifted its holdings in Frontdoor by 6.0% during the third quarter. Abel Hall LLC now owns 3,025 shares of the company's stock valued at $221,000 after purchasing an additional 170 shares in the last quarter. State of Wyoming increased its stake in shares of Frontdoor by 2.5% during the first quarter. State of Wyoming now owns 7,140 shares of the company's stock worth $377,000 after purchasing an additional 177 shares in the last quarter. Handelsbanken Fonder AB increased its stake in shares of Frontdoor by 0.8% during the second quarter. Handelsbanken Fonder AB now owns 25,900 shares of the company's stock worth $2,010,000 after purchasing an additional 200 shares in the last quarter. Pullen Investment Management LLC raised its position in shares of Frontdoor by 0.6% during the 3rd quarter. Pullen Investment Management LLC now owns 48,078 shares of the company's stock worth $3,515,000 after purchasing an additional 283 shares during the last quarter. Finally, Corient Private Wealth LP raised its position in shares of Frontdoor by 5.8% during the 2nd quarter. Corient Private Wealth LP now owns 5,807 shares of the company's stock worth $447,000 after purchasing an additional 316 shares during the last quarter.

About Frontdoor

Frontdoor, Inc provides home service plans and repair solutions in the United States. Its plans help homeowners manage the cost of repairing or replacing covered home systems and appliances, such as heating and cooling equipment, plumbing, and kitchen appliances.

The company serves customers through brands including American Home Shield, HSA Home Warranty, and OneGuard Home Warranties. It also connects customers with a network of independent service contractors and offers digital tools and support to help arrange home repairs.

Frontdoor became an independent publicly traded company in 2018 after being spun off from ServiceMaster Global Holdings.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.