Analyst Dae Lee from J.P. Morgan reiterated a Buy rating on Zillow Group Class C and increased the price target to $94.00 from $79.00.
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Dae Lee has given his Buy rating due to a combination of factors that highlight Zillow Group’s strong performance and future potential. Despite the housing market being at a cyclical low and facing macroeconomic uncertainties, Zillow has demonstrated robust execution across its strategic initiatives. The company has shown solid revenue growth, particularly in its Rentals segment, where revenue growth is expected to accelerate significantly in the second half of the year. Additionally, Zillow’s Enhanced Markets and Zillow Showcase initiatives have shown promising expansion, contributing to the company’s overall growth trajectory.
Dae Lee’s rating is also influenced by Zillow’s positive outlook for the future. The company has raised its revenue growth expectations for 2025, projecting mid-teens percentage growth, and is on track to expand its Adjusted EBITDA margin and achieve positive GAAP net income. This optimistic guidance, coupled with Zillow’s ability to outperform industry growth rates, supports the Buy rating. The establishment of a December 2026 price target of $94, based on a multiple of the projected 2027 Adjusted EBITDA, further underscores the confidence in Zillow’s long-term growth prospects.
Based on the recent corporate insider activity of 106 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.