Bank of America Securities analyst Curtis Nagle maintained a Hold rating on Zillow Group Class A (ZG – Research Report) yesterday and set a price target of $84.00.
Curtis Nagle’s rating is based on a combination of factors related to recent policy changes and market conditions. The introduction of the ‘Multiple Listing Options for Sellers’ policy by the NAR is seen as a neutral to slightly positive development for Zillow. This policy allows for delayed marketing exempt listings, which provides sellers with more flexibility without significantly altering the existing MLS rules. This change addresses concerns about potential negative impacts on Zillow’s listing volume and quality due to a rollback of the Clear Cooperation Policy.
Additionally, the financial outlook for Zillow remains stable but not overly optimistic. While there is an expected growth in existing home transactions and average home prices, the anticipated residential revenue growth for Zillow is modest and suggests no significant market share gains compared to previous years. The uncertainty in the macroeconomic environment, particularly regarding interest rates and affordability issues, adds to the cautious stance. Therefore, the Hold rating reflects a balanced view of potential opportunities and risks in the current market landscape.