Analyst Nikhil Devnani of Bernstein maintained a Buy rating on Zillow Group Class A, retaining the price target of $105.00.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
Nikhil Devnani has given his Buy rating due to a combination of factors that highlight Zillow Group Class A’s potential for growth despite ongoing legal challenges. The analyst acknowledges the current lawsuit alleging violations of the RESPA and Washington Consumer Protection Act, which could impact the company’s short-term valuation. However, Devnani emphasizes that the underlying business remains robust, with a strong marketplace and potential upside in the housing market that outweighs the legal concerns.
Furthermore, Devnani points out that while the lawsuit may pose some risks, it does not fundamentally disrupt Zillow’s business model. The company’s strategy to increase mortgage attach rates is not central to its growth narrative, which is more focused on its Preferred agent program and other products like Rentals and Showcase. This strategic focus, combined with the anticipation of Zillow’s defense against the lawsuit, supports the Buy rating as the company navigates through these legal proceedings.
Devnani covers the Consumer Cyclical sector, focusing on stocks such as Maplebear, DoorDash, and eBay. According to TipRanks, Devnani has an average return of 19.9% and a 66.67% success rate on recommended stocks.
In another report released on November 3, Citi also reiterated a Buy rating on the stock with a $100.00 price target.