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Truist Securities reiterates Buy rating on Frontdoor stock with $71 target

Published 20/10/2025, 14:16
Truist Securities reiterates Buy rating on Frontdoor stock with $71 target
FTDR
-0.79%

Investing.com - Truist Securities maintained its Buy rating and $71.00 price target on Frontdoor Inc. (NASDAQ:FTDR), citing card data and transaction metrics that suggest the company’s third-quarter revenue will likely meet consensus expectations. The company, currently valued at $4.8 billion, has seen 5 analysts revise their earnings estimates upward for the upcoming period, according to InvestingPro data.

According to Truist’s card data analysis, spending on Frontdoor decreased 0.2% year over year in the third quarter, compared to a 0.7% increase in the second quarter. The number of card transactions declined 1% year over year in the third quarter, showing improvement from the 2% decline observed in the previous quarter.

The average revenue per transaction increased 1% year over year in the third quarter, compared to a 2% increase in the second quarter, according to the Truist data.

Truist’s $71 price target assumes Frontdoor will trade at 10 times the firm’s 2026 EBITDA forecast, which the firm notes remains below the company’s historical trading norm.

Frontdoor provides home service plans that cover major home system components and appliances.

In other recent news, Frontdoor Inc. reported impressive financial results for the second quarter of 2025, exceeding market expectations. The company achieved an earnings per share of $1.63, surpassing the anticipated $1.45, which represents a 12.41% positive surprise. Frontdoor also reported a revenue of $617 million, beating the forecast of $602.6 million. These results highlight the company’s strong performance during this period. Analysts had projected these earnings and revenue figures, and Frontdoor’s ability to exceed these projections has been noteworthy. The company’s recent performance has caught the attention of investors and analysts alike. This is reflected in the positive market reaction following the earnings announcement.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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