In a report released yesterday, John Colantuoni from Jefferies reiterated a Buy rating on Zillow Group Class C (Z – Research Report), with a price target of $110.00.
John Colantuoni has given his Buy rating due to a combination of factors that highlight Zillow Group Class C’s strong market position and growth potential. The recent decision by the National Association of Realtors to maintain the Clear Cooperation Policy, along with the introduction of the new Multiple Listing Options for Sellers, ensures that Zillow’s ability to aggregate listings remains unaffected. This development is seen as a positive for Zillow, as it mitigates the risk of competitors amassing exclusive inventories that could challenge Zillow’s platform.
Furthermore, Colantuoni points out that Zillow’s core Premier Agent business is poised to benefit from a significant recovery in Housing Transaction Value. The company’s expansion into new product offerings is expected to generate substantial additional revenue, while its low variable costs are likely to enhance revenue growth and drive impressive EBITDA performance. With the housing market performing slightly above expectations, Zillow is well-positioned to deliver strong financial results, reinforcing its status as a top pick in the market.
Based on the recent corporate insider activity of 99 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 Z in relation to earlier this year.