BTIG analyst Jake Fuller has maintained their neutral stance on ZG stock, giving a Hold rating on May 5.
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Jake Fuller’s rating is based on several factors, primarily revolving around Zillow Group’s recent performance and future market outlook. While the company has shown strong strategic execution and delivered results that exceeded expectations, its guidance for the future was less optimistic, reflecting a cautious view of the housing market. This cautious outlook is a significant factor in the Hold rating, as the visibility on a turnaround in the housing market remains unclear.
Additionally, while Zillow Group has demonstrated growth in areas outside of its residential segment and improved its margins, the ongoing investments and the soft housing market outlook have led to only modest changes in revenue and EBITDA projections for the year. Despite the company’s strong positioning and efforts to gain market share, the uncertainties surrounding the housing market and new emerging concerns suggest a wait-and-see approach, justifying the Hold rating.
Fuller covers the Consumer Cyclical sector, focusing on stocks such as Booking Holdings, Airbnb, and Expedia. According to TipRanks, Fuller has an average return of 5.4% and a 50.18% success rate on recommended stocks.
In another report released on May 5, Canaccord Genuity also maintained a Hold rating on the stock with a $76.00 price target.