William Blair analyst Jeff Schmitt has maintained their bullish stance on FTDR stock, giving a Buy rating on October 22.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Jeff Schmitt has given his Buy rating due to a combination of factors including Frontdoor’s impressive financial performance and strategic initiatives. The company reported a significant beat in its third-quarter results, with adjusted EPS of $1.58 surpassing the consensus estimate of $1.49. This was accompanied by revenues of $618 million, which not only exceeded the high end of guidance but also reflected a robust top-line growth of 14%.
A key driver of this growth was a 12% increase in unit volumes, particularly in the real estate channel, which experienced its first sequential growth in five years. This was attributed to improved housing conditions and a new promotional strategy that enhanced agent engagement. Additionally, other revenue streams saw a substantial increase, notably from new home structural warranties and a strong HVAC discount program. The company’s gross margin also expanded despite cost inflation, and share buybacks further supported earnings growth. These positive developments, along with an upward revision in full-year guidance, underpin Schmitt’s optimistic outlook on Frontdoor’s stock.
In another report released on October 22, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $77.00 price target.
Based on the recent corporate insider activity of 30 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of FTDR in relation to earlier this year.