Morgan Stanley analyst Matthew Cost maintained a Hold rating on Zillow Group Class C yesterday and set a price target of $82.00.
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Matthew Cost’s rating is based on the evolving competitive landscape in the real estate sector, particularly with Google’s new feature that integrates for-sale home listings directly into search results. This development signals a potential long-term competition for Zillow, as it could shift consumer attention and broker advertising dollars towards Google’s platform. Despite this, Zillow has managed to maintain a strong direct traffic base, which suggests limited immediate impact on its market position.
However, the adoption of agentic AI tools could pose a significant challenge to Zillow in the future. These tools have the potential to streamline the property search process and connect buyers with agents, directly competing with Zillow’s offerings. Therefore, while the current threat is not imminent, the evolving technological landscape necessitates a cautious approach, justifying the Hold rating as Zillow navigates these potential disruptions.
Cost covers the Communication Services sector, focusing on stocks such as Roblox, Electronic Arts, and Zillow Group Class C. According to TipRanks, Cost has an average return of 8.7% and a 56.70% success rate on recommended stocks.