fell on Friday after the home services company cut its full-year revenue forecast. JP Morgan analysts lowered the rating citing supply chain and inflation concerns.
Frontdoor (ticker: FTDR) fell 13.2% to $ 36.29. The stock fell 16.7% in 2021.
Frontdoor said it expects annual revenue of $ 1.59 billion to $ 1.6 billion, lower than its previous forecast of $ 1.6 billion to $ 1.62 billion.
JP Morgan analysts lowered the stock to Neutral from Overweight and lowered the price target to $ 45 from $ 60.
“There are still persistent headwinds on margins due to supply chain challenges and inflation, which gives us little conviction as to where EBITDA will move next year,” said analysts said.
Frontdoor started out as a building contractor, but has recently expanded to home services through Pro Connect, which allows consumers to schedule repairs and maintenance for appliances, plumbing, HVAC and more. Again.
Along with supply chain and inflation issues, analysts cited the historically tight real estate market for the downgrade.
“We stayed with FTDR because we considered many of these issues to be transient, but the number of headwinds is building up and now the outlook for Direct-to-Consumer (DTC) and ProConnect companies looks more uncertain,” indicates the note. .
Frontdoor reported adjusted third-quarter earnings of 91 cents per share, above estimates of 68 cents.
Write to Karishma Vanjani at [email protected]