BTIG analyst Jake Fuller has maintained their neutral stance on ZG stock, giving a Hold rating on February 7.
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Jake Fuller has given his Hold rating due to a combination of factors influencing Zillow Group Class A’s current and future performance. Although Zillow exceeded its fourth-quarter guidance with favorable EHS trends, its residential revenue fell short in comparison to the broader housing market, marking a notable underperformance. Additionally, the first-quarter revenue and EBITDA guidance came in below expectations, particularly in the residential segment, which adds uncertainty to the company’s future outlook.
Furthermore, despite the company meeting above-Street expectations for revenue and EBITDA in the past quarter, the continued investments and unpredictable housing market trends make it challenging to project strong growth by 2025. The company’s valuation is maintained at a Neutral rating due to the downward pressure on consensus estimates and a fair value range that reflects these uncertainties. With limited visibility into market trajectory and Zillow’s ability to gain share, these factors collectively justify the Hold rating by Jake Fuller.
In another report released on February 7, Bernstein also maintained a Hold rating on the stock with a $65.00 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.