Frontdoor (NASDAQ:FTDR) shares surged more than 4% intra-day today after Truist Securities analysts upgraded the stock from Hold to Buy, setting a price target of $42.00, up from $40.00.
The analysts explained the upgrade by citing a more positive outlook for the company’s earnings. They raised the 2023 earnings per share (EPS) estimate to $1.70 from $1.60 and increased the 2024 forecast to $1.92 from $1.80. This optimism is driven by their analysis of Frontdoor-specific Truist Card Data, which supports a more favorable revenue outlook. Additionally, the analysts pointed out a positive claims environment in the third quarter and the potential for improvement in the Real Estate channel in the upcoming quarters.