Zillow Group downgraded to Neutral from Outperform at Mizuho

Mizuho analyst Lloyd Walmsley downgraded Zillow (Z) Group (ZG) to Neutral from Outperform with a price target of $70, down from $100. The firm cites increasing uncertainty around the market structure of the company’s real estate listings distribution, the magnitude of its litigation, and potential implications for Zillow’s business for the downgrade. Even if changes to the industry structure end up modest, agent concerns around fiduciary duty “could put a chill” on Flex, which is core to the company’s growth story, the analyst tells investors in a research note. Mizuho believes the shares deserve to trade at a lower multiple given the uncertainty.