Ronald Josey, an analyst from Citi, maintained the Buy rating on Zillow Group Class A (ZG – Research Report). The associated price target remains the same with $87.00.
Confident Investing Starts Here:
- Quickly and easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter
Ronald Josey has given his Buy rating due to a combination of factors including Zillow Group’s strong financial performance and strategic initiatives. The company reported first-quarter revenues and EBITDA that exceeded expectations, with revenue reaching $598 million, a 13% year-over-year increase, and adjusted EBITDA of $153 million, which was significantly above guidance. This performance is notable given the challenging real estate environment, highlighting the resilience of Zillow’s core Residential business.
Furthermore, Zillow’s strategic focus on enhancing its market offerings and expanding its rental listings is expected to drive future growth. The company’s guidance for 2025 indicates a robust outlook with anticipated revenue growth in the low-to-mid-teens and a 40% increase in rentals revenue. Additionally, Zillow is projected to achieve continued EBITDA margin expansion and positive GAAP net income for the full year, supporting the Buy rating with an expected share price return of 30.9%.
Josey covers the Communication Services sector, focusing on stocks such as Meta Platforms, Alphabet Class A, and Zillow Group Class A. According to TipRanks, Josey has an average return of 23.4% and a 57.88% success rate on recommended stocks.