Analyst Curtis Nagle from Bank of America Securities reiterated a Hold rating on Zillow Group Class A and increased the price target to $88.00 from $72.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Curtis Nagle has given his Hold rating due to a combination of factors surrounding Zillow Group Class A’s current market position and future outlook. The company’s second-quarter revenue and EBITDA slightly exceeded market expectations, showcasing solid execution. However, the third-quarter guidance presents a mixed outlook, with revenue and EBITDA projections aligning closely with market estimates, indicating limited upside potential in the near term.
Despite raising its full-year revenue guidance and demonstrating strong growth in rental monetization and technological integrations, Zillow’s stock is trading at a premium valuation. This premium, combined with ongoing housing market challenges expected in the second half of the year, suggests limited opportunities for significant growth in stock value. Consequently, while Zillow is well-positioned for long-term improvements, the current market conditions and valuation metrics justify a Hold rating.
In another report released on July 25, Bernstein also maintained a Hold rating on the stock with a $75.00 price target.