BTIG analyst Jake Fuller has maintained their neutral stance on ZG stock, giving a Hold rating yesterday.
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Jake Fuller has given his Hold rating due to a combination of factors surrounding the potential impact of Google’s new testing on Zillow Group’s business model. The introduction of a sponsored carousel for home listings at the top of mobile search results by Google has sparked concerns about its implications for Zillow’s portal model. This move could potentially challenge Zillow’s core business operations, such as booking tours and connecting with agents, similar to previous disruptions seen in other industries like travel.
Despite these concerns, there is industry pushback regarding the legality of Google’s listings, as they may conflict with existing rules prohibiting brokers from advertising other brokers’ listings. This uncertainty suggests that the market reaction might be exaggerated, but more details are needed to fully understand the potential regulatory issues and their impact on Zillow’s operations. Therefore, maintaining a Hold rating reflects the need for caution until more information becomes available.
In another report released yesterday, Goldman Sachs also maintained a Hold rating on the stock with a $78.00 price target.