FTDR - Frontdoor shares slip as Goldman downgrades to 'Sell'

Frontdoor, Inc. (NASDAQ:FTDR) fell sharply on Friday as Goldman Sachs shifted to a bearish viewpoint on the stock. “We believe investor debates around inflation in the home services space is likely to remain a headwind for FTDR, with cost inflation likely to keep gross margins under pressure and uncertainty as to the company’s ability to mitigate such headwinds with pricing increases without impacting churn, incremental demand, etc.,” a team of analysts at the bank wrote.  As a result of these dynamics, the team downgraded Frontdoor (FTDR) from “Neutral” to “Sell” and cut his price target to $21 from $27.  “We see a more negative risk/reward skew relative to our broader coverage universe,” the team concluded. “Specifically, our $21 price target implies ~12% downside from current levels, versus an average of ~28% upside for the rest of our coverage universe.” Shares fell over 5% in premarket trading on Friday. Read more

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Frontdoor shares slip as Goldman downgrades to ‘Sell’