In a report released today, Alec Brondolo from Wells Fargo maintained a Hold rating on Zillow Group Class A, with a price target of $75.00.
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Alec Brondolo has given his Hold rating due to a combination of factors impacting Zillow Group Class A’s performance. The mixed data points from the second quarter, such as fluctuating web traffic and a pre-announced negative outlook from HOUS, suggest limited upside potential compared to previous quarters. Although Zillow has historically outperformed its revenue guidance, the confluence of weaker macroeconomic indicators and specific industry challenges may result in a smaller beat this quarter.
Furthermore, the company’s exposure to the luxury market, which has shown signs of deceleration, is minimal, and improvements in listing showcase penetration offer some positive signals. The anticipated guidance for the third quarter reflects a cautious outlook, with key questions surrounding the sustainability of rental growth and the impact of new listing rules. Despite these challenges, the price target was raised to $75, reflecting a longer-term perspective on valuation.
Brondolo covers the Technology sector, focusing on stocks such as LiveRamp Holdings, Wix, and Unity Software. According to TipRanks, Brondolo has an average return of -4.1% and a 47.83% success rate on recommended stocks.