Citi analyst Ronald Josey has reiterated their bullish stance on ZG stock, giving a Buy rating on November 17.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Ronald Josey has given his Buy rating due to a combination of factors, primarily driven by the strong adoption of Zillow Showcase Listings (ZSLs). In October, there was a notable increase in ZSLs, with a 20% month-over-month growth, reaching approximately 29,400 listings. This growth is attributed to Zillow’s strategic partnerships with over 50 national brokerages, which has significantly boosted ZSL adoption.
Additionally, the revenue potential from these listings is substantial, with October’s revenue estimated at $6.6 million and a projected run-rate of $20 million for the fourth quarter. Despite challenges in the real estate macro environment, Zillow’s investments in various product areas such as Enhanced Markets, Home Loans, and Rentals are expected to drive above-market growth. These factors, alongside the company’s intermediate-term goals for ZSLs, support the Buy rating and a target price of $100.
According to TipRanks, Josey is a 5-star analyst with an average return of 19.4% and a 56.08% success rate. Josey covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Meta Platforms, and Zillow Group Class A.
In another report released on November 17, Mizuho Securities also reiterated a Buy rating on the stock with a $0.00 price target.