Bernstein analyst Nikhil Devnani has maintained their neutral stance on ZG stock, giving a Hold rating yesterday.
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Nikhil Devnani’s rating is based on a combination of factors that reflect Zillow Group Class A’s current and future performance outlook. Despite beating sell-side estimates, the recent quarter’s performance was not as robust as expected, with some growth metrics driven by temporary market conditions rather than ongoing trends. The company has set conservative guidance, which, coupled with a softer performance in January, slightly tempers expectations.
Looking ahead, Zillow’s strategy focuses on expanding their market presence and enhancing offerings in areas like mortgage and rentals, which are anticipated to drive growth. However, challenges remain, especially in terms of the housing market’s recovery and the company’s ability to reach its long-term revenue and margin goals. While there is potential for revenue growth, the need for further proof of sustainable margin improvement and positive GAAP net income in 2025 underpins the Hold rating, as investors assess the company’s ability to achieve its strategic objectives.
In another report released yesterday, Cantor Fitzgerald also reiterated a Hold rating on the stock with a $70.00 price target.
Based on the recent corporate insider activity of 46 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ZG in relation to earlier this year.