Analyst Nikhil Devnani of Bernstein maintained a Buy rating on Zillow Group Class A, retaining the price target of $105.00.
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Nikhil Devnani has given his Buy rating due to a combination of factors influencing Zillow Group’s market position and potential for growth. Despite recent challenges, such as a lawsuit and the merger of Compass and Anywhere, Devnani perceives these events as opportunities rather than setbacks. The lawsuit, which alleges misleading practices and hidden fees, is considered less impactful as it lacks concrete evidence of significant harm to consumers, and Zillow has room to address these concerns.
Furthermore, the merger between Compass and Anywhere, while potentially significant, is expected to take time to influence the market dynamics. Zillow’s ability to continue providing value to agents through leads and transactions positions it well to navigate a more consolidated market. Devnani believes that Zillow’s distribution network remains a valuable asset, and the company’s capacity to adapt to industry shifts, like the potential rise of private listings, supports a positive long-term outlook. These factors contribute to the Buy rating, suggesting that Zillow is poised for growth despite current challenges.
In another report released on September 7, RBC Capital also maintained a Buy rating on the stock with a $95.00 price target.