JPM opens Frontdoor with 'overweight'

frontdoor

25/03/2019 13:09

** J.P. Morgan initiates coverage on home service plans
provider  FTDR.O  with "overweight" rating and $41 price target
    ** Says FTDR's home services business will sustain
high-single-digit pct revenue growth, driven by overall market
growth and expansion beyond repairs into home maintenance &
improvement
    ** FTDR's scale is a "key competitive advantage", as it
drives volume discounts with service professional firms and 
original equipment manufacturer suppliers, which in turn
improves margins and allows for more investment - JPM
    ** FTDR also developing an on-demand home service offering
and JPM says co is well-positioned to compete in on-demand 
    ** Brokerage projects on-demand revenue of $10 mln in 2020 &
$100 mln in 2023, which is likely conservative but says it is
higher than Street
    ** Current avg. rating on stock is "strong buy"; median PT
$44
    ** Up to Friday's close, FTDR up ~23 pct this year

 (Reporting by Arjun Panchadar in Bengaluru)
 ((RM: Arjun.Panchadar.thomsonreuters.com@reuters.net))