Zillow Group upgraded to Outperform from Market Perform at Bernstein

Bernstein upgraded Zillow (Z) Group (ZG) to Outperform from Market Perform with a price target of $105, up from $75. The company has been executing on mid-teens revenue growth with Rentals and Showcase emerging as growth drivers, the analyst tells investors in a research note. The firm believes Zillow’s operating leverage “can surprise to the upside” in 2027 and 2028 with the company compounding EBITDA at 25%-30% and posting mid-teens revenue growth. Bernstein also sees Zillow benefitting from lower interest rates.