Truist Securities Upgrades Frontdoor Inc. (FTDR) to Buy, cites topline momentum and attractive valuation

Truist Securities analyst Mark Hughes upgraded Frontdoor Inc. (NASDAQ: FTDR) from Hold to Buy with a price target of $42.00 (from $40.00).

The analyst comments: "We are raising our 2023 EPS estimate to $1.70 from $1.60 and boosting our 2024 forecast to $1.92 from $1.80 based on our more optimistic topline view, informed by our analysis of Frontdoor-specific Truist Card Data. We also highlight the favorable claims backdrop in 3Q as well as the opportunity for the Real Estate channel to firm in coming quarters. The stock’s valuation is attractive at 17x our 2023 forecast or just off its all-time low multiple; our target of $42 (from $40) assumes FTDR trades at 22x our new 2024 estimate, still below the long-term norm in the mid-twenties."

For an analyst ratings summary and ratings history on Frontdoor Inc. click here. For more ratings news on Frontdoor Inc. click here.

Shares of Frontdoor Inc. closed at $29.31 yesterday.

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