Truist analyst Mark Hughes upgraded Frontdoor to Buy from Hold with a price target of $42, up from $40. The Truist card data suggests the company should generate $525M-plus in Q3 revenue, solidly ahead of the Street at $510M and guidance of $500M-$515M, the analyst tells investors in a research note. The firm says total card spending on Frontdoor increased 5.1% in Q3 compared to a decline of 0.8% in Q3 and represented the best result since Q4 of 2021. The average revenue per card transaction was up 12% in Q3 compared to up 8% in Q2, Truist adds. The firm increased estimates based on a more optimistic sales view and finds Frontdoor’s valuation attractive at current share levels.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
See Insiders’ Hot Stocks on TipRanks >>
Read More on FTDR: