Keefe says risks remain for Zillow after Compass drops suit

Keefe Bruyette keeps a Market Perform rating on Zillow (Z) with a $60 price target after Compass (COMP) voluntarily dismissed its antitrust lawsuit against the company. The decision is a positive development for Zillow as it removes the overhang related to this antitrust litigation and allows the company to continue to enforce its private listings ban, the analyst tells investors in a research note. However, Keefe still sees Compass’s “aggressive” off-MLS listing strategies as an ongoing risk to Zillow’s listing coverage.