Zillow Group Class C: Strong Buy Rating Amid Market Challenges and Product Innovation

Analyst John Colantuoni from Jefferies maintained a Buy rating on Zillow Group Class C (Z – Research Report) and keeping the price target at $100.00.

John Colantuoni has given his Buy rating due to a combination of factors that position Zillow Group Class C favorably in the current housing market. Despite a slight decline in transaction values and a challenging housing backdrop, Zillow is expected to outperform with a potential 15th consecutive revenue beat. This is attributed to the company’s strong performance history and the growth of new products, which are expected to drive revenue despite market fluctuations.
Colantuoni also highlights the potential for Zillow’s Premier Agent segment to regain its market outperformance. The expansion of Real-Time Touring and other innovative products is anticipated to enhance lead conversion and monetization. Additionally, the increase in rental vacancy rates is seen as a positive indicator for Zillow’s rental revenue, as it encourages property managers to advertise more. Overall, the combination of these factors supports the Buy rating for Zillow Group Class C stock.

According to TipRanks, Colantuoni is a 4-star analyst with an average return of 8.6% and a 62.87% success rate. Colantuoni covers the Consumer Cyclical sector, focusing on stocks such as eBay, Airbnb, and ACV Auctions.

In another report released on May 27, Wedbush also maintained a Buy rating on the stock with a $90.00 price target.