In a report released today, Nicholas Jones CFA from JMP Securities maintained a Buy rating on Zillow Group Class A (ZG – Research Report), with a price target of $92.00.
Nicholas Jones CFA has given his Buy rating due to a combination of factors that highlight Zillow Group’s strategic positioning and potential for growth. One of the key considerations is the market’s reaction to the potential acquisition of Redfin, which has led to a positive movement in Zillow’s stock price. This indicates the market’s confidence in Zillow’s strategic decisions and potential synergies from such a deal.
Additionally, the valuation of Zillow Group supports the Buy rating, with a price target set at $92 based on an EV/2026E adj. EBITDA multiple of approximately 25x. This valuation reflects Zillow’s strong market position, its effective super app strategy, and its ability to gain market share despite challenging industry conditions. The premium valuation is justified by Zillow’s dominant role in its sector, its robust EBITDA margin profile, and its superior growth compared to competitors.
Jones CFA covers the Consumer Cyclical sector, focusing on stocks such as Chewy, Amazon, and Booking Holdings. According to TipRanks, Jones CFA has an average return of 28.5% and a 53.21% success rate on recommended stocks.
In another report released on February 13, Citi also reiterated a Buy rating on the stock with a $98.00 price target.