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Zillow: Diversified Growth and User Momentum Support Buy Rating Despite Near-Term Profit Headwinds

Zillow: Diversified Growth and User Momentum Support Buy Rating Despite Near-Term Profit Headwinds

Analyst Ronald Josey of Citi maintained a Buy rating on Zillow Group Class A, retaining the price target of $100.00.

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Ronald Josey has given his Buy rating due to a combination of factors, including Zillow’s ability to deliver solid top-line growth despite a difficult housing backdrop. The company exceeded revenue expectations in the latest quarter and guided first-quarter sales above consensus, with user metrics such as monthly unique visitors and total site visits showing renewed momentum that supports its competitive position and long‑term growth narrative.

He also highlights that Zillow’s core For Sale business is growing faster than the broader real estate market, while mortgage volumes and rentals revenue are expanding at notably higher rates, underscoring diversification across key revenue streams. Although near‑term profitability guidance is softer, partly due to legal and investment costs, his Buy view reflects confidence that scaling rentals, improved product adoption, and a favorable 2026 revenue outlook can drive substantial upside, as implied by the high expected share price return.

In another report released on February 6, KeyBanc also maintained a Buy rating on the stock with a $75.00 price target.

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