In a report released yesterday, Ronald Josey from Citi reiterated a Buy rating on Zillow Group Class A (ZG – Research Report), with a price target of $87.00.
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Ronald Josey has given his Buy rating due to a combination of factors that highlight Zillow Group’s potential for growth. One of the primary reasons is the increase in Zillow Showcase Listings (ZSL), which saw a 3% month-over-month rise in March, reaching approximately 13,415 listings. This growth in listings is indicative of a broader adoption of Zillow’s services, particularly in key states like Florida, Texas, and California, which are leading in ZSL numbers.
Furthermore, the enhanced market penetration of ZSLs, which deliver significantly more page views, saves, and shares compared to other listings, suggests a strong market position. Additionally, the new listing standards aligned with the National Association of Realtors’ updated rules are expected to maintain Zillow’s competitive edge. Despite macroeconomic challenges, Zillow’s strategic investments in product expansion are anticipated to drive above-market growth, justifying the Buy rating, although the target price has been adjusted to $87 due to ongoing uncertainties.
According to TipRanks, Josey is a top 100 analyst with an average return of 22.1% and a 54.77% success rate. Josey covers the Communication Services sector, focusing on stocks such as Meta Platforms, Alphabet Class A, and Zillow Group Class A.